Pacific Sunwear of California Inc (NASDAQ: PSUN), SinoHub Inc (AMEX: SIHI) and Orbitz Worldwide Inc (NYSE: OWW) are some service industry stocks which are likely to benefit from the drop in the global oil prices. While it is true that oil is a highly speculative commodity and today’s drop can be nullified by tomorrow’s spike, we can take a broad call on this one keeping oil price forecasts, which indicates towards even more correction, into consideration.

Retail and specialty retail are the first names that come to my mind when presented with a situation of a little more disposable income. Consumers wouldn’t buy more staples with the extra money they’ll get. The most probable fate of this kind of money is low denomination discretionary buying. Here is a look why these stocks make sense:

Pacific Sunwear of California Inc (NASDAQ: PSUN) is a specialty retailer of action sports, fashion and music that focuses on teens and young adults. The company also has an online presence through its e-commerce website. The stock of this loss making company has been trending lower and lower in recent months. It shed 18 per cent in the past month and made a new 52 week low of $2.27. Current market price of $2.59 isn’t too high from its recent low and has even breached its book value of $2.77.

Although a lot of its losses have got to do with the mall-based format it follows (something I’m not very comfortable with), the dissection of retail strategies warrants a separate article in itself.

China based SinoHub Inc (AMEX: SIHI) offers customized mobile phones in China and other developing countries. As one can guess, these products are not too costly, are bought more on impulses rather than necessities and are something customers often look to upgrade. China will actually be one of the biggest beneficiaries of the drop in oil prices as it ranks among the largest oil importing countries. Interestingly enough, this stock also trades near its 52 week low of $1.03 and a measly P/E multiple of 1.57.

Orbitz Worldwide Inc (NYSE: OWW) provides a range of online travel services where users can book air tickets, cabs, hotels and cruises. While it is not a direct beneficiary of the oil price correction, it stands to gain from the increased spending power of its customers. The stock currently trades at $2.44, up about 18 per cent from its 52 week low of $2.06.