3 Stocks Pulling 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 77 points (0.5%) at 16,913 as of Friday, June 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,319 issues advancing vs. 667 declining with 134 unchanged.

The Services sector currently sits up 0.8% versus the S&P 500, which is up 0.4%. On the negative front, top decliners within the sector include Rite Aid ( RAD), down 1.7%, Las Vegas Sands ( LVS), down 0.8% and Walgreen ( WAG), down 0.8%. Top gainers within the sector include CoStar Group ( CSGP), up 4.2%, Trinity Industries ( TRN), up 3.4%, Companhia Brasileira De Distribuicao ( CBD), up 3.4%, Grupo Televisa SAB ( TV), up 2.6% and Avis Budget Group ( CAR), up 2.6%.

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

3. Hertz Global Holdings ( HTZ) is one of the companies pushing the Services sector lower today. As of noon trading, Hertz Global Holdings is down $2.78 (-9.1%) to $27.70 on heavy volume. Thus far, 31.1 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 7.2 million shares. The stock has ranged in price between $26.96-$28.00 after having opened the day at $27.50 as compared to the previous trading day's close of $30.49.

Hertz Global Holdings, Inc., through its subsidiaries, is engaged in the car and equipment rental businesses worldwide. It operates through four segments: U.S. Car Rental, International Car Rental, Worldwide Equipment Rental, and All Other Operations. Hertz Global Holdings has a market cap of $13.5 billion and is part of the diversified services industry. Shares are up 6.5% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, good cash flow from operations, increase in stock price during the past year and expanding profit margins. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Hertz Global Holdings 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, MGM Resorts International ( MGM) is down $0.27 (-1.1%) to $25.17 on light volume. Thus far, 3.4 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $25.09-$25.38 after having opened the day at $25.35 as compared to the previous trading day's close of $25.44.

MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. MGM Resorts International has a market cap of $12.6 billion and is part of the leisure industry. Shares are up 8.2% year-to-date as of the close of trading on Thursday. Currently there are 13 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates MGM Resorts International as a hold. The company's strengths can be seen in multiple areas, such as its 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 MGM Resorts International 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, eBay ( EBAY) is down $0.90 (-1.8%) to $49.67 on heavy volume. Thus far, 11.9 million shares of eBay exchanged hands as compared to its average daily volume of 11.6 million shares. The stock has ranged in price between $49.50-$50.88 after having opened the day at $50.88 as compared to the previous trading day's close of $50.58.

eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $63.9 billion and is part of the specialty retail industry. Shares are down 7.8% year-to-date as of the close of trading on Thursday. Currently there are 18 analysts that rate eBay a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates eBay as a hold. 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 and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full eBay 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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