3 Stocks Dragging In The Services Sector

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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 77 points (-0.5%) at 16,791 as of Thursday, June 26, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,231 issues advancing vs. 1,744 declining with 167 unchanged.

The Services sector currently sits down 0.4% versus the S&P 500, which is down 0.4%. On the negative front, top decliners within the sector include Discovery Communications ( DISCA), down 3.2%, JB Hunt Transport Services ( JBHT), down 2.6%, Fidelity National Information Services ( FIS), down 1.8%, TJX Companies ( TJX), down 1.8% and Gap ( GPS), down 1.6%. Top gainers within the sector include Melco Crown Entertainment ( MPEL), up 4.8%, Ctrip.com International ( CTRP), up 2.6%, Las Vegas Sands ( LVS), up 2.3%, Wynn Resorts ( WYNN), up 2.2% and Ryanair Holdings ( RYAAY), up 1.5%.

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

3. Bed Bath & Beyond ( BBBY) is one of the companies pushing the Services sector lower today. As of noon trading, Bed Bath & Beyond is down $5.17 (-8.5%) to $55.94 on heavy volume. Thus far, 13.2 million shares of Bed Bath & Beyond exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $54.96-$56.51 after having opened the day at $56.50 as compared to the previous trading day's close of $61.11.

Bed Bath & Beyond Inc., together with its subsidiaries, operates a chain of retail stores. Bed Bath & Beyond has a market cap of $12.3 billion and is part of the retail industry. Shares are down 23.9% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Bed Bath & Beyond a buy, 1 analyst rates it a sell, and 12 rate it a hold.

TheStreet Ratings rates Bed Bath & Beyond as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures 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 Bed Bath & Beyond 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, Union Pacific ( UNP) is down $0.84 (-0.8%) to $99.24 on average volume. Thus far, 1.4 million shares of Union Pacific exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $99.18-$100.30 after having opened the day at $100.21 as compared to the previous trading day's close of $100.09.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in the United States. Union Pacific has a market cap of $90.3 billion and is part of the transportation industry. Shares are up 19.1% year-to-date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Union Pacific as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Union Pacific 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, Wal-Mart Stores ( WMT) is down $0.79 (-1.0%) to $74.83 on average volume. Thus far, 2.7 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 5.9 million shares. The stock has ranged in price between $74.82-$75.61 after having opened the day at $75.52 as compared to the previous trading day's close of $75.62.

Wal-Mart Stores Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $244.9 billion and is part of the retail industry. Shares are down 3.9% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Wal-Mart Stores a buy, 1 analyst rates it a sell, and 10 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, reasonable valuation levels, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Wal-Mart Stores 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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