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 55 points (0.3%) at 16,661 as of Tuesday, May 27, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,943 issues advancing vs. 1,024 declining with 173 unchanged.

The Services sector currently sits up 1.0% versus the S&P 500, which is up 0.5%. On the negative front, top decliners within the sector include LATAM Airlines Group ( LFL), down 2.5%, Companhia Brasileira De Distribuicao ( CBD), down 2.1%, AutoZone ( AZO), down 2.0%, Advance Auto Parts ( AAP), down 1.4% and Amazon.com ( AMZN), down 1.4%. Top gainers within the sector include Moody's Corporation ( MCO), up 3.5%, Chipotle Mexican Grill ( CMG), up 3.1%, Expedia ( EXPE), up 2.6%, Melco Crown Entertainment ( MPEL), up 2.2% and Rite Aid ( RAD), up 2.2%.

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

3. YY ( YY) is one of the companies pushing the Services sector lower today. As of noon trading, YY is down $2.61 (-4.1%) to $60.76 on heavy volume. Thus far, 2.4 million shares of YY exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $60.27-$64.95 after having opened the day at $62.40 as compared to the previous trading day's close of $63.37.

YY Inc., through its subsidiaries, operates an online social platform in the People's Republic of China. YY has a market cap of $3.5 billion and is part of the internet industry. Shares are up 26.0% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate YY a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates YY as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full YY 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, Directv ( DTV) is down $0.60 (-0.7%) to $82.99 on average volume. Thus far, 3.4 million shares of Directv exchanged hands as compared to its average daily volume of 5.6 million shares. The stock has ranged in price between $82.89-$83.71 after having opened the day at $83.50 as compared to the previous trading day's close of $83.59.

DIRECTV provides digital television entertainment services in the United States and Latin America. The company acquires, promotes, sells, and distributes digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $42.1 billion and is part of the media industry. Shares are up 21.0% year-to-date as of the close of trading on Friday. Currently there are 6 analysts that rate Directv a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations 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 Directv 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, Netflix ( NFLX) is down $6.73 (-1.7%) to $395.62 on average volume. Thus far, 2.4 million shares of Netflix exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $393.77-$402.22 after having opened the day at $402.00 as compared to the previous trading day's close of $402.35.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $24.1 billion and is part of the media industry. Shares are up 9.3% year-to-date as of the close of trading on Friday. Currently there are 13 analysts that rate Netflix a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Netflix 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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