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.

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, Comcast ( CMCSK) is down $0.38 (-0.8%) to $50.16 on light volume. Thus far, 1.1 million shares of Comcast exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $49.55-$50.53 after having opened the day at $50.31 as compared to the previous trading day's close of $50.54.

Comcast Corporation operates as a media and technology company worldwide. It operates through Cable Communications, Cable Networks, Broadcast Television, Filmed Entertainment, and Theme Parks segments. Comcast has a market cap of $22.7 billion and is part of the media industry. Shares are up 1.3% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst that rates Comcast a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Comcast as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Comcast 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, Twenty-First Century Fox ( FOX) is down $0.29 (-0.9%) to $33.19 on average volume. Thus far, 2.9 million shares of Twenty-First Century Fox exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $32.72-$33.50 after having opened the day at $33.44 as compared to the previous trading day's close of $33.48.

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. Twenty-First Century Fox has a market cap of $25.1 billion and is part of the media industry. Shares are down 3.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst that rates Twenty-First Century Fox a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Twenty-First Century Fox as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Twenty-First Century Fox 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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