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 157 points (1.0%) at 16,184 as of Monday, April 14, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,280 issues advancing vs. 712 declining with 128 unchanged.

The Services sector currently sits up 0.7% versus the S&P 500, which is up 1.0%. On the negative front, top decliners within the sector include Ryanair Holdings ( RYAAY), down 1.3%, and Carnival Corporation ( CCL), down 1.3%. Top gainers within the sector include MasterCard Incorporated ( MA), up 4.4%, Walgreen Company ( WAG), up 2.7%, Moody's Corporation ( MCO), up 2.5%, Directv ( DTV), up 2.4% and Fastenal Company ( FAST), up 1.9%.

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 $0.37 (-1.1%) to $34.39 on average volume. Thus far, 260,324 shares of Royal Philips exchanged hands as compared to its average daily volume of 568,700 shares. The stock has ranged in price between $34.16-$34.40 after having opened the day at $34.36 as compared to the previous trading day's close of $34.76.

Koninklijke Philips N.V. is engaged in healthcare, consumer lifestyle, and lighting businesses worldwide. Royal Philips has a market cap of $33.0 billion and is part of the consumer durables industry. Shares are down 6.0% 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 1 rates 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. 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, Gap ( GPS) is down $0.58 (-1.5%) to $37.82 on average volume. Thus far, 3.8 million shares of Gap exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $37.62-$38.88 after having opened the day at $38.73 as compared to the previous trading day's close of $38.40.

The Gap, Inc. operates as an apparel retail company worldwide. It provides apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Gap has a market cap of $17.6 billion and is part of the retail industry. Shares are down 1.7% year-to-date as of the close of trading on Friday. Currently there are 11 analysts that rate Gap a buy, no analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Gap 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, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year 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 Gap 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, Delta Air Lines ( DAL) is down $0.33 (-1.0%) to $32.19 on average volume. Thus far, 7.2 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12.2 million shares. The stock has ranged in price between $31.92-$33.00 after having opened the day at $32.86 as compared to the previous trading day's close of $32.52.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $28.0 billion and is part of the transportation industry. Shares are up 18.4% year-to-date as of the close of trading on Friday. Currently there are 11 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, attractive valuation levels, good cash flow from operations, solid stock price performance and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. 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.

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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