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.

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