ADS, HTZ, KORS, DAL And NFLX, Pushing 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 111 points (0.7%) at 16,536 as of Tuesday, Jan. 7, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 2,084 issues advancing vs. 856 declining with 147 unchanged.

The Services sector currently sits up 0.8% versus the S&P 500, which is up 0.6%. On the negative front, top decliners within the sector include DISH Network ( DISH), down 1.8%, and Time Warner ( TWX), down 0.6%. Top gainers within the sector include Pandora Media ( P), up 6.5%, Vipshop Holdings ( VIPS), up 5.1%, MGM Resorts International ( MGM), up 4.6%, Ctrip.com International ( CTRP), up 4.5% and Melco Crown Entertainment ( MPEL), up 4.3%.

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

5. Alliance Data Systems Corporation ( ADS) is one of the companies pushing the Services sector lower today. As of noon trading, Alliance Data Systems Corporation is down $4.34 (-1.7%) to $253.95 on average volume. Thus far, 428,498 shares of Alliance Data Systems Corporation exchanged hands as compared to its average daily volume of 594,800 shares. The stock has ranged in price between $251.67-$255.00 after having opened the day at $255.00 as compared to the previous trading day's close of $258.29.

Alliance Data Systems Corporation provides marketing and loyalty solutions primarily in North America. The company operates in three segments: LoyaltyOne, Epsilon, and Private Label Services and Credit. Alliance Data Systems Corporation has a market cap of $12.8 billion and is part of the diversified services industry. The company has a P/E ratio of 38.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.8% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Alliance Data Systems Corporation a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Alliance Data Systems Corporation as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, increase in net income, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Alliance Data Systems 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.

4. As of noon trading, Hertz Global Holdings ( HTZ) is down $0.35 (-1.2%) to $27.84 on average volume. Thus far, 6.6 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 10.3 million shares. The stock has ranged in price between $27.70-$28.34 after having opened the day at $28.22 as compared to the previous trading day's close of $28.19.

Hertz Global Holdings, Inc., through its subsidiaries, offers car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. Hertz Global Holdings has a market cap of $12.8 billion and is part of the diversified services industry. The company has a P/E ratio of 41.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.5% year to date as of the close of trading on Monday. Currently there are 5 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Hertz Global Holdings 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, Michael Kors Holdings ( KORS) is down $2.99 (-3.6%) to $79.05 on average volume. Thus far, 3.2 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $78.72-$80.50 after having opened the day at $80.26 as compared to the previous trading day's close of $82.04.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. Michael Kors Holdings has a market cap of $16.8 billion and is part of the specialty retail industry. The company has a P/E ratio of 33.5, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Michael Kors Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, expanding profit margins and impressive record of earnings per share growth. 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 Michael Kors Holdings 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, Delta Air Lines ( DAL) is down $0.37 (-1.3%) to $28.92 on average volume. Thus far, 5.6 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12.7 million shares. The stock has ranged in price between $28.85-$29.66 after having opened the day at $29.44 as compared to the previous trading day's close of $29.29.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $25.0 billion and is part of the transportation industry. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 6.6% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and revenue growth. 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 Delta Air Lines 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, Netflix ( NFLX) is down $15.28 (-4.2%) to $344.29 on heavy volume. Thus far, 2.6 million shares of Netflix exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $340.83-$347.89 after having opened the day at $347.79 as compared to the previous trading day's close of $359.57.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $21.5 billion and is part of the specialty retail industry. The company has a P/E ratio of 305.1, above the S&P 500 P/E ratio of 17.7. Shares are down 2.3% year to date as of the close of trading on Monday. Currently there are 4 analysts that rate Netflix a buy, 4 analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Get the full Netflix 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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