3 Stocks Dragging 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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 34 points (0.2%) at 16,585 as of Friday, May 9, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,493 issues advancing vs. 1,448 declining with 155 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.1%. On the negative front, top decliners within the sector include Scientific Games ( SGMS), down 22.3%, Air Methods ( AIRM), down 10.6%, Tumi Holdings ( TUMI), down 8.0%, Shutterstock ( SSTK), down 6.0% and AMC Networks ( AMCX), down 4.3%. Top gainers within the sector include Computer ( CSC), up 9.8%, AthenaHealth ( ATHN), up 5.9%, Melco Crown Entertainment ( MPEL), up 4.5%, Air Lease ( AL), up 3.8% and Interpublic Group of Companies ( IPG), up 2.6%.

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

3. Discovery Communications ( DISCA) is one of the companies pushing the Services sector lower today. As of noon trading, Discovery Communications is down $1.16 (-1.6%) to $73.20 on light volume. Thus far, 556,277 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $72.99-$74.42 after having opened the day at $74.11 as compared to the previous trading day's close of $74.36.

Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Discovery Communications has a market cap of $10.7 billion and is part of the media industry. Shares are down 17.8% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Discovery Communications Ratings Report now.

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