3 Stocks Pushing The 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.

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.

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, Cardinal Health ( CAH) is down $3.67 (-5.3%) to $65.84 on heavy volume. Thus far, 3.5 million shares of Cardinal Health exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $64.33-$66.80 after having opened the day at $66.77 as compared to the previous trading day's close of $69.51.

Cardinal Health, Inc., a healthcare services company, provides pharmaceutical and medical products and services in the United States and internationally. The company operates in two segments, Pharmaceutical and Medical. Cardinal Health has a market cap of $23.9 billion and is part of the wholesale industry. The company has a P/E ratio of 67.4, above the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year-to-date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Cardinal Health a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Cardinal Health as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Cardinal Health 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, McDonald's ( MCD) is down $0.64 (-0.6%) to $100.74 on average volume. Thus far, 2.1 million shares of McDonald's exchanged hands as compared to its average daily volume of 5.4 million shares. The stock has ranged in price between $100.33-$100.86 after having opened the day at $100.68 as compared to the previous trading day's close of $101.38.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company's restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's has a market cap of $100.4 billion and is part of the leisure industry. The company has a P/E ratio of 17.5, below the S&P 500 P/E ratio of 17.7. Shares are up 4.5% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts that rate McDonald's a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates McDonald's as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full McDonald's 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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