3 Stocks Underperforming Today In The Services Sector

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 16,035 as of Monday, Dec. 9, 2013, 11:45 AM ET. The NYSE advances/declines ratio sits at 1,480 issues advancing vs. 1,397 declining with 175 unchanged.

The Services sector currently sits down 0.1% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Restoration Hardware Holdings ( RH), down 4.4%, Sears Holdings Corporation ( SHLD), down 2.4%, Ulta Salon Cosmetics & Fragrances ( ULTA), down 2.4%, L Brands ( LTD), down 1.4% and Whole Foods Market ( WFM), down 0.9%. Top gainers within the sector include Sysco Corporation ( SYY), up 11.9%, Melco Crown Entertainment ( MPEL), up 3.4%, Grupo Televisa S.A.B ( TV), up 2.5%, MGM Resorts International ( MGM), up 2.5% and CarMax ( KMX), up 1.6%.

TheStreet would like to highlight 3 stocks pushing the sector lower today:

3. Royal Philips ( PHG) is one of the companies pushing the Services sector lower today. As of noon trading, Royal Philips is down $0.50 (-1.4%) to $34.72 on light volume. Thus far, 157,809 shares of Royal Philips exchanged hands as compared to its average daily volume of 550,500 shares. The stock has ranged in price between $34.67-$34.92 after having opened the day at $34.79 as compared to the previous trading day's close of $35.22.

Koninklijke Philips N.V. engages in the healthcare, lighting, and consumer lifestyle businesses worldwide. Royal Philips has a market cap of $31.5 billion and is part of the consumer durables industry. The company has a P/E ratio of 93.2, above the S&P 500 P/E ratio of 17.7. Shares are up 29.9% year to date as of the close of trading on Friday. Currently there is 1 analyst that rates Royal Philips a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Royal Philips as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Royal Philips Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, Verisk Analytics ( VRSK) is down $0.76 (-1.1%) to $66.57 on average volume. Thus far, 451,305 shares of Verisk Analytics exchanged hands as compared to its average daily volume of 775,600 shares. The stock has ranged in price between $66.20-$67.34 after having opened the day at $67.24 as compared to the previous trading day's close of $67.33.

Verisk Analytics, Inc. provides proprietary data, analytics methods, and embedded decision support solutions for detecting fraud in property and casualty (P&C) insurance, financial, and healthcare industries primarily in the United States. Verisk Analytics has a market cap of $11.0 billion and is part of the diversified services industry. The company has a P/E ratio of 31.1, above the S&P 500 P/E ratio of 17.7. Shares are up 27.7% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate Verisk Analytics a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Verisk Analytics as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Verisk Analytics Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Time Warner ( TWX) is down $0.80 (-1.2%) to $65.77 on average volume. Thus far, 3.1 million shares of Time Warner exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $65.60-$66.62 after having opened the day at $66.50 as compared to the previous trading day's close of $66.57.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. The company operates in three segments: Networks, Film and TV Entertainment, and Publishing. The Networks segment consists of Turner Broadcasting System, Inc. and Home Box Office, Inc. Time Warner has a market cap of $59.3 billion and is part of the media industry. The company has a P/E ratio of 16.6, below the S&P 500 P/E ratio of 17.7. Shares are up 39.2% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate Time Warner a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Time Warner as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Time Warner Ratings Report now.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 5 stocks, ETFs may be of interest. Investors who are bullish on the services sector could consider iShares Dow Jones US Cons Services ( IYC) while those bearish on the services sector could consider ProShares Ultra Short Consumer Sers ( SCC).

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