3 Stocks Pushing The Services Sector Downward

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One out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading down 3 points (0.0%) at 16,578 as of Thursday, May 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,778 issues advancing vs. 1,187 declining with 180 unchanged.

The Services sector currently sits up 0.4% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include American Railcar Industries ( ARII), down 13.2%, Genesee & Wyoming ( GWR), down 3.7%, CSX ( CSX), down 1.5%, Thomson Reuters ( TRI), down 1.2% and Norfolk Southern ( NSC), down 0.9%. Top gainers within the sector include Kirby ( KEX), up 8.0%, Rite Aid ( RAD), up 6.9%, Vipshop Holdings ( VIPS), up 6.2%, Netflix ( NFLX), up 6.0% and Directv ( DTV), up 5.7%.

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

3. Carnival ( CCL) is one of the companies pushing the Services sector lower today. As of noon trading, Carnival is down $0.48 (-1.2%) to $38.84 on average volume. Thus far, 1.9 million shares of Carnival exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $38.74-$39.38 after having opened the day at $39.35 as compared to the previous trading day's close of $39.31.

Carnival Corporation operates as a cruise company worldwide. It operates in two segments, North America; and Europe, Australia, & Asia. Carnival has a market cap of $23.4 billion and is part of the leisure industry. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year-to-date as of the close of trading on Wednesday. Currently there are 4 analysts that rate Carnival a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Carnival as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Carnival Ratings Report now.

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