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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 54 points (-0.3%) at 17,085 as of Thursday, July 17, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 855 issues advancing vs. 2,057 declining with 204 unchanged.

The Services sector currently sits down 0.5% versus the S&P 500, which is down 0.5%. On the negative front, top decliners within the sector include AutoNation ( AN), down 7.2%, LATAM Airlines Group ( LFL), down 2.9%, Melco Crown Entertainment ( MPEL), down 2.7%, Vipshop Holdings ( VIPS), down 1.9% and United Continental Holdings ( UAL), down 1.8%. Top gainers within the sector include Time Warner ( TWX), up 3.3%, Canadian Pacific Railway ( CP), up 3.3%, CBS ( CBS), up 2.3%, Michael Kors Holdings ( KORS), up 2.1% and eBay ( EBAY), up 2.0%.

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

3. Starbucks ( SBUX) is one of the companies pushing the Services sector lower today. As of noon trading, Starbucks is down $0.66 (-0.8%) to $78.07 on average volume. Thus far, 1.8 million shares of Starbucks exchanged hands as compared to its average daily volume of 3.9 million shares. The stock has ranged in price between $77.46-$78.46 after having opened the day at $78.12 as compared to the previous trading day's close of $78.73.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Starbucks has a market cap of $59.4 billion and is part of the leisure industry. Shares are up 0.4% year-to-date as of the close of trading on Wednesday. Currently there are 18 analysts that rate Starbucks a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Starbucks as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Starbucks 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, Walgreen ( WAG) is down $0.45 (-0.6%) to $70.97 on light volume. Thus far, 1.8 million shares of Walgreen exchanged hands as compared to its average daily volume of 5.3 million shares. The stock has ranged in price between $70.65-$71.62 after having opened the day at $70.84 as compared to the previous trading day's close of $71.42.

Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. Walgreen has a market cap of $68.5 billion and is part of the retail industry. Shares are up 24.3% year-to-date as of the close of trading on Wednesday. Currently there are 13 analysts that rate Walgreen a buy, 2 analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Walgreen as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Walgreen 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, Comcast ( CMCSA) is down $0.49 (-0.9%) to $54.56 on average volume. Thus far, 6.2 million shares of Comcast exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $54.52-$55.16 after having opened the day at $54.53 as compared to the previous trading day's close of $55.05.

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 $117.8 billion and is part of the media industry. Shares are up 5.6% year-to-date as of the close of trading on Wednesday. Currently there are 17 analysts that rate Comcast a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Comcast 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, increase in net income, revenue growth and attractive valuation levels. 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.

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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