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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 96 points (-0.6%) at 16,467 as of Friday, Aug. 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 828 issues advancing vs. 2,201 declining with 119 unchanged.

The Services sector currently sits down 0.9% versus the S&P 500, which is down 0.6%. On the negative front, top decliners within the sector include Genesee & Wyoming ( GWR), down 3.9%, Melco Crown Entertainment ( MPEL), down 3.8%, Western Union ( WU), down 2.7%, LKQ ( LKQ), down 3.1% and MGM Resorts International ( MGM), down 2.8%. Top gainers within the sector include McKesson ( MCK), up 0.7%, Yum Brands ( YUM), up 1.0%, Walgreen ( WAG), up 1.2%, Time Warner ( TWX), up 0.7% and Kroger ( KR), up 0.7%.

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

3. Staples ( SPLS) is one of the companies pushing the Services sector lower today. As of noon trading, Staples is down $0.34 (-2.9%) to $11.26 on average volume. Thus far, 5.0 million shares of Staples exchanged hands as compared to its average daily volume of 9.6 million shares. The stock has ranged in price between $11.25-$11.56 after having opened the day at $11.54 as compared to the previous trading day's close of $11.59.

Staples, Inc., together with its subsidiaries, operates office products superstores. It operates in three segments: North American Stores & Online, North American Commercial, and International Operations. Staples has a market cap of $7.3 billion and is part of the specialty retail industry. Shares are down 27.1% year-to-date as of the close of trading on Thursday. Currently there are no analysts that rate Staples a buy, 2 analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Staples as a hold. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself. Get the full Staples 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, Ctrip.com International ( CTRP) is down $2.57 (-4.0%) to $61.46 on heavy volume. Thus far, 2.0 million shares of Ctrip.com International exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $61.11-$64.46 after having opened the day at $64.16 as compared to the previous trading day's close of $64.03.

Ctrip.com International, Ltd., together with its subsidiaries, provides travel services for hotel accommodations, ticketing services, packaged tours, and corporate travel management in China. Ctrip.com International has a market cap of $8.7 billion and is part of the leisure industry. Shares are up 29.0% year-to-date as of the close of trading on Thursday. Currently there are 10 analysts that rate Ctrip.com International a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Ctrip.com International as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, disappointing return on equity and feeble growth in the company's earnings per share. Get the full Ctrip.com 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, Delta Air Lines ( DAL) is down $0.29 (-0.8%) to $37.17 on average volume. Thus far, 5.3 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12.4 million shares. The stock has ranged in price between $36.90-$37.70 after having opened the day at $37.38 as compared to the previous trading day's close of $37.46.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $31.9 billion and is part of the transportation industry. Shares are up 36.4% year-to-date as of the close of trading on Thursday. Currently there are 11 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels, solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Delta Air Lines 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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