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 25 points (-0.1%) at 16,936 as of Monday, July 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,030 issues advancing vs. 1,900 declining with 205 unchanged.

The Services sector currently sits down 0.6% versus the S&P 500, which is down 0.2%. On the negative front, top decliners within the sector include Rite Aid ( RAD), down 4.3%, ManpowerGroup ( MAN), down 3.5%, Kansas City Southern ( KSU), down 2.8%, Westinghouse Air Brake Technologies ( WAB), down 2.6% and Norfolk Southern ( NSC), down 2.2%. Top gainers within the sector include Family Dollar Stores ( FDO), up 23.8%, Dollar Tree Stores ( DLTR), up 3.1%, Ryanair Holdings ( RYAAY), up 2.7%, Michael Kors Holdings ( KORS), up 1.6% and Grupo Televisa SAB ( TV), up 0.9%.

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

3. Target ( TGT) is one of the companies pushing the Services sector lower today. As of noon trading, Target is down $0.30 (-0.5%) to $60.09 on light volume. Thus far, 1.8 million shares of Target exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $59.99-$60.58 after having opened the day at $60.40 as compared to the previous trading day's close of $60.39.

Target Corporation operates general merchandise stores in the United States and Canada. Target has a market cap of $38.6 billion and is part of the retail industry. Shares are down 4.5% year-to-date as of the close of trading on Friday. Currently there are 5 analysts that rate Target a buy, 4 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Target as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and poor profit margins. Get the full Target 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 $1.36 (-1.9%) to $71.93 on light volume. Thus far, 1.4 million shares of Walgreen exchanged hands as compared to its average daily volume of 5.5 million shares. The stock has ranged in price between $71.91-$73.35 after having opened the day at $73.29 as compared to the previous trading day's close of $73.29.

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 $69.9 billion and is part of the retail industry. Shares are up 27.6% year-to-date as of the close of trading on Friday. 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, Twenty-First Century Fox ( FOXA) is down $0.23 (-0.7%) to $32.58 on average volume. Thus far, 5.4 million shares of Twenty-First Century Fox exchanged hands as compared to its average daily volume of 13.9 million shares. The stock has ranged in price between $32.50-$32.93 after having opened the day at $32.83 as compared to the previous trading day's close of $32.81.

Twenty-First Century Fox, Inc. operates as a diversified media and entertainment company worldwide. Twenty-First Century Fox has a market cap of $47.0 billion and is part of the media industry. Shares are down 6.7% year-to-date as of the close of trading on Friday. Currently there are 13 analysts that rate Twenty-First Century Fox a buy, 1 analyst rates it a sell, and 1 rates 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, notable return on equity, attractive valuation levels, increase in stock price during the past year and largely solid financial position with reasonable debt levels by most measures. 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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