3 Stocks Pushing 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.

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 68 points (0.4%) at 17,048 as of Thursday, Aug. 21, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,747 issues advancing vs. 1,215 declining with 171 unchanged.

The Services sector currently is unchanged today versus the S&P 500, which is up 0.3%. On the negative front, top decliners within the sector include Sears Holdings ( SHLD), down 8.7%, Staples ( SPLS), down 3.4%, Ctrip.com International ( CTRP), down 2.2%, Michael Kors Holdings ( KORS), down 1.3% and Companhia Brasileira De Distribuicao ( CBD), down 1.2%. Top gainers within the sector include eBay ( EBAY), up 4.1%, Royal Philips ( PHG), up 1.0%, Moody's Corporation ( MCO), up 0.8% and Chipotle Mexican Grill ( CMG), up 0.8%.

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

3. Canadian Pacific Railway ( CP) is one of the companies pushing the Services sector lower today. As of noon trading, Canadian Pacific Railway is down $1.20 (-0.6%) to $199.02 on light volume. Thus far, 183,127 shares of Canadian Pacific Railway exchanged hands as compared to its average daily volume of 806,900 shares. The stock has ranged in price between $198.65-$200.92 after having opened the day at $200.92 as compared to the previous trading day's close of $200.22.

Canadian Pacific Railway Limited, through its subsidiaries, operates a transcontinental railway in Canada and the United States. The company provides logistics and supply chain expertise services. Canadian Pacific Railway has a market cap of $34.2 billion and is part of the transportation industry. Shares are up 32.3% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts that rate Canadian Pacific Railway a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Canadian Pacific Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Canadian Pacific Railway 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, CSX ( CSX) is down $0.30 (-1.0%) to $30.58 on average volume. Thus far, 2.9 million shares of CSX exchanged hands as compared to its average daily volume of 6.1 million shares. The stock has ranged in price between $30.56-$30.99 after having opened the day at $30.95 as compared to the previous trading day's close of $30.87.

CSX Corporation, together with its subsidiaries, provides rail-based transportation services in the United States and Canada. It offers traditional rail services, and transports intermodal containers and trailers. CSX has a market cap of $30.6 billion and is part of the transportation industry. Shares are up 7.3% year-to-date as of the close of trading on Wednesday. Currently there are 5 analysts that rate CSX a buy, no analysts rate it a sell, and 14 rate it a hold.

TheStreet Ratings rates CSX as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full CSX 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, TJX Companies ( TJX) is down $0.62 (-1.0%) to $58.78 on average volume. Thus far, 2.0 million shares of TJX Companies exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $58.68-$59.50 after having opened the day at $59.40 as compared to the previous trading day's close of $59.40.

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. The company operates in four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. TJX Companies has a market cap of $41.0 billion and is part of the retail industry. Shares are down 6.8% year-to-date as of the close of trading on Wednesday. Currently there are 12 analysts that rate TJX Companies a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates TJX Companies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full TJX Companies 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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