3 Services Stocks Dragging The Sector Down

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 38 points (0.2%) at 16,171 as of Friday, Feb. 21, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,939 issues advancing vs. 967 declining with 167 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include National CineMedia ( NCMI), down 13.9%, Financial Engines ( FNGN), down 11.1%, Royal Philips ( PHG), down 0.8%, Liberty Global ( LBTYA), down 0.6% and Starbucks Corporation ( SBUX), down 0.8%. Top gainers within the sector include Shutterstock ( SSTK), up 16.9%, CoStar Group ( CSGP), up 6.3%, Omnicare ( OCR), up 3.9%, DISH Network ( DISH), up 3.6% and Priceline.com ( PCLN), up 3.6%.

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

3. Charter Communications ( CHTR) is one of the companies pushing the Services sector lower today. As of noon trading, Charter Communications is down $6.66 (-5.0%) to $125.18 on heavy volume. Thus far, 3.3 million shares of Charter Communications exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $124.00-$132.02 after having opened the day at $132.02 as compared to the previous trading day's close of $131.84.

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Charter Communications has a market cap of $13.6 billion and is part of the media industry. Shares are down 4.6% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts that rate Charter Communications a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. Get the full Charter 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.

2. As of noon trading, Costco Wholesale Corporation ( COST) is down $1.22 (-1.1%) to $113.84 on average volume. Thus far, 1.3 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $113.60-$115.49 after having opened the day at $115.40 as compared to the previous trading day's close of $115.06.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $50.5 billion and is part of the retail industry. Shares are down 3.3% year-to-date as of the close of trading on Thursday. Currently there are 11 analysts that rate Costco Wholesale Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Costco Wholesale Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Costco Wholesale 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.

1. As of noon trading, Comcast ( CMCSA) is down $0.31 (-0.6%) to $51.45 on heavy volume. Thus far, 11.6 million shares of Comcast exchanged hands as compared to its average daily volume of 13.1 million shares. The stock has ranged in price between $51.18-$52.06 after having opened the day at $52.06 as compared to the previous trading day's close of $51.76.

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. Comcast has a market cap of $110.3 billion and is part of the media industry. Shares are down 0.8% year-to-date as of the close of trading on Thursday. Currently there are 21 analysts that rate Comcast a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Comcast as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Comcast 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 3 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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