5 Stocks Pulling The Services Sector Downward

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 81 points (-0.5%) at 15,762 as of Thursday, Dec. 12, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,157 issues advancing vs. 1,771 declining with 147 unchanged.

The Services sector currently sits up 0.1% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include AthenaHealth ( ATHN), down 4.7%, Companhia Brasileira De Distribuicao ( CBD), down 3.5%, Royal Philips ( PHG), down 1.9%, Grupo Televisa S.A.B ( TV), down 1.4% and McKesson ( MCK), down 1.0%. Top gainers within the sector include China Lodging Group ( HTHT), up 6.6%, JetBlue Airways Corporation ( JBLU), up 4.2%, Financial Engines ( FNGN), up 3.3%, Delta Air Lines ( DAL), up 2.1% and Starwood Hotels & Resorts Worldwide ( HOT), up 1.7%.

TheStreet would like to highlight 5 stocks pushing the sector lower today:

5. W.W. Grainger ( GWW) is one of the companies pushing the Services sector lower today. As of noon trading, W.W. Grainger is down $1.95 (-0.8%) to $252.10 on heavy volume. Thus far, 446,202 shares of W.W. Grainger exchanged hands as compared to its average daily volume of 371,400 shares. The stock has ranged in price between $246.86-$254.80 after having opened the day at $254.55 as compared to the previous trading day's close of $254.05.

W.W. Grainger, Inc. engages in the distribution of maintenance, repair, and operating supplies, as well as other related products and services for businesses and institutions primarily in the United States and Canada. W.W. Grainger has a market cap of $17.8 billion and is part of the wholesale industry. The company has a P/E ratio of 23.1, above the S&P 500 P/E ratio of 17.7. Shares are up 25.5% year to date as of the close of trading on Wednesday. Currently there are 7 analysts that rate W.W. Grainger a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates W.W. Grainger as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full W.W. Grainger 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.

4. As of noon trading, Discovery Communications ( DISCA) is down $0.98 (-1.2%) to $83.55 on light volume. Thus far, 285,747 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $83.04-$84.45 after having opened the day at $84.27 as compared to the previous trading day's close of $84.53.

Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $12.5 billion and is part of the media industry. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 34.2% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Discovery Communications 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.

3. As of noon trading, Kroger ( KR) is down $0.51 (-1.3%) to $39.85 on average volume. Thus far, 1.3 million shares of Kroger exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $39.75-$40.27 after having opened the day at $40.25 as compared to the previous trading day's close of $40.36.

The Kroger Co., together with its subsidiaries, operates as a retailer in the United States. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $21.0 billion and is part of the retail industry. The company has a P/E ratio of 13.1, below the S&P 500 P/E ratio of 17.7. Shares are up 55.1% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Kroger a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and solid stock price performance. 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 Kroger 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, Sirius XM Radio ( SIRI) is down $0.03 (-0.9%) to $3.46 on heavy volume. Thus far, 49.4 million shares of Sirius XM Radio exchanged hands as compared to its average daily volume of 46.8 million shares. The stock has ranged in price between $3.38-$3.53 after having opened the day at $3.52 as compared to the previous trading day's close of $3.50.

Sirius XM Holdings Inc. provides satellite radio services in the United States and Canada. Sirius XM Radio has a market cap of $22.1 billion and is part of the media industry. The company has a P/E ratio of 51.4, above the S&P 500 P/E ratio of 17.7. Shares are up 24.6% year to date as of the close of trading on Wednesday. Currently there are 6 analysts that rate Sirius XM Radio a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Sirius XM Radio as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and notable return on equity. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Sirius XM Radio 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, Sysco Corporation ( SYY) is down $0.73 (-2.0%) to $36.23 on heavy volume. Thus far, 5.2 million shares of Sysco Corporation exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $36.07-$37.00 after having opened the day at $36.79 as compared to the previous trading day's close of $36.96.

Sysco Corporation, through its subsidiaries, markets and distributes a range of food and related products primarily to the foodservice or food-away-from-home industry. Sysco Corporation has a market cap of $21.5 billion and is part of the wholesale industry. The company has a P/E ratio of 22.3, above the S&P 500 P/E ratio of 17.7. Shares are up 16.7% year to date as of the close of trading on Wednesday. Currently there is 1 analyst that rates Sysco Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Sysco Corporation 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, increase in stock price during the past year, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Sysco Corporation 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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