LB, CCL And COST, 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 78 points (0.5%) at 16,438 as of Thursday, March 6, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,775 issues advancing vs. 1,148 declining with 152 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Copa Holdings ( CPA), down 8.7%, and Walgreen Company ( WAG), down 1.4%. Top gainers within the sector include YY ( YY), up 5.6%, Cencosud ( CNCO), up 4.1%, Vipshop Holdings ( VIPS), up 2.9%, Yum Brands ( YUM), up 3.3% and Grupo Televisa S.A.B ( TV), up 2.5%.

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

3. L Brands ( LB) is one of the companies pushing the Services sector lower today. As of noon trading, L Brands is down $0.98 (-1.7%) to $56.53 on average volume. Thus far, 804,873 shares of L Brands exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $56.50-$58.18 after having opened the day at $58.15 as compared to the previous trading day's close of $57.51.

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $16.4 billion and is part of the retail industry. Shares are down 8.4% year-to-date as of the close of trading on Wednesday. Currently there are 12 analysts that rate L Brands a buy, 3 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates L Brands as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that the company's revenue growth has not been good. Get the full L Brands 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, Carnival Corporation ( CCL) is down $0.47 (-1.2%) to $38.81 on average volume. Thus far, 2.3 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $38.61-$39.04 after having opened the day at $38.65 as compared to the previous trading day's close of $39.28.

Carnival Corporation operates as a cruise company worldwide. It operates in two segments, North America; and Europe, Australia, & Asia. Carnival Corporation has a market cap of $23.5 billion and is part of the leisure industry. Shares are down 1.4% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Carnival Corporation a buy, 2 analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Carnival Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Carnival 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, Costco Wholesale Corporation ( COST) is down $3.51 (-3.0%) to $112.96 on heavy volume. Thus far, 4.4 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $112.27-$113.96 after having opened the day at $113.15 as compared to the previous trading day's close of $116.47.

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 $51.3 billion and is part of the retail industry. Shares are down 2.0% year-to-date as of the close of trading on Wednesday. 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, increase in net income, notable return on equity, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. 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.

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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