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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 37 points (0.2%) at 17,115 as of Thursday, Sept. 4, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,639 issues advancing vs. 1,333 declining with 167 unchanged.

The Services sector currently sits up 0.6% versus the S&P 500, which is up 0.2%. On the negative front, top decliners within the sector include Burger King Worldwide ( BKW), down 2.3%, and Priceline Group ( PCLN), down 0.8%. Top gainers within the sector include Fastenal ( FAST), up 4.0%, Ctrip.com International ( CTRP), up 3.9%, Melco Crown Entertainment ( MPEL), up 3.2%, United Continental Holdings ( UAL), up 3.2% and Costco Wholesale ( COST), up 2.8%.

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

3. Charter Communications ( CHTR) is one of the companies pushing the Services sector lower today. As of noon trading, Charter Communications is down $1.51 (-0.9%) to $158.09 on average volume. Thus far, 358,415 shares of Charter Communications exchanged hands as compared to its average daily volume of 931,900 shares. The stock has ranged in price between $158.08-$159.65 after having opened the day at $159.60 as compared to the previous trading day's close of $159.60.

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Charter Communications has a market cap of $17.2 billion and is part of the media industry. Shares are up 16.7% year-to-date as of the close of trading on Wednesday. Currently there are 3 analysts that rate Charter Communications a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins. Get the full Charter Communications 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, Sirius XM Holdings ( SIRI) is down $0.04 (-1.0%) to $3.60 on average volume. Thus far, 19.0 million shares of Sirius XM Holdings exchanged hands as compared to its average daily volume of 44.4 million shares. The stock has ranged in price between $3.59-$3.64 after having opened the day at $3.63 as compared to the previous trading day's close of $3.64.

Sirius XM Holdings Inc. provides satellite radio services in the United States and Canada. Sirius XM Holdings has a market cap of $20.6 billion and is part of the media industry. Shares are up 4.2% year-to-date as of the close of trading on Wednesday. Currently there are 7 analysts that rate Sirius XM Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Sirius XM Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Sirius XM Holdings 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, Pandora Media ( P) is down $0.88 (-3.2%) to $26.55 on average volume. Thus far, 3.7 million shares of Pandora Media exchanged hands as compared to its average daily volume of 7.1 million shares. The stock has ranged in price between $26.51-$27.30 after having opened the day at $27.02 as compared to the previous trading day's close of $27.43.

Pandora Media, Inc. provides Internet radio services in the United States. The company allows listeners to create up to 100 personalized stations to access free music and comedy, as well as offers Pandora One, a paid subscription service to listeners. Pandora Media has a market cap of $5.7 billion and is part of the media industry. Shares are up 3.1% year-to-date as of the close of trading on Wednesday. Currently there are 16 analysts that rate Pandora Media a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Pandora Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share. Get the full Pandora Media 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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