5 Stocks Pushing The Services Sector Higher

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

All three major indices are trading down today with the Dow Jones Industrial Average (^DJI) trading down 24 points (-0.2%) at 13,886 as of Thursday, Jan. 31, 2013, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,305 issues advancing vs. 1,515 declining with 144 unchanged.

The Services sector currently sits up 0.1% versus the S&P 500, which is down 0.3%. Top gainers within the sector include WMS Industries (WMS), up 52.6%, Tractor Supply (TSCO), up 8.4%, Las Vegas Sands (LVS), up 5.6%, Copart (CPRT), up 4.4% and Melco Crown Entertainment (MPEL), up 2.7%. On the negative front, top decliners within the sector include Liquidity Service (LQDT), down 25.2%, Time Warner Cable (TWC), down 9.3%, Netflix (NFLX), down 3.3%, Priceline.com (PCLN), down 2.6% and Grupo Televisa S.A (TV), down 1.6%.

TheStreet Ratings group would like to highlight 5 stocks pushing the sector higher today:

5. Brazilian Distribution Company (CBD) is one of the companies pushing the Services sector higher today. As of noon trading, Brazilian Distribution Company is up $1.55 (3.4%) to $47.38 on heavy volume Thus far, 352,982 shares of Brazilian Distribution Company exchanged hands as compared to its average daily volume of 390,600 shares. The stock has ranged in price between $46.58-$47.59 after having opened the day at $46.61 as compared to the previous trading day's close of $45.83.

Companhia Brasileira de Distribuic o engages in the retail of food and non-food products to individual consumers through its chain of hypermarkets, supermarkets, specialized and department stores, and the Internet. Brazilian Distribution Company has a market cap of $11.8 billion and is part of the retail industry. The company has a P/E ratio of 48.5, above the S&P 500 P/E ratio of 17.7. Shares are up 4.2% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate Brazilian Distribution Company a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Brazilian Distribution Company as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, good cash flow from operations, growth in earnings per share and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Brazilian Distribution Company Ratings Report now.

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4. As of noon trading, Kirby (KEX) is up $4.27 (6.4%) to $70.76 on heavy volume Thus far, 401,811 shares of Kirby exchanged hands as compared to its average daily volume of 334,700 shares. The stock has ranged in price between $68.70-$72.29 after having opened the day at $68.74 as compared to the previous trading day's close of $66.49.

Kirby Corporation, through its subsidiaries, provides marine transportation and diesel engine services primarily in the United States. Its Marine Transportation segment provides transportation services for the inland and coastal markets. Kirby has a market cap of $3.8 billion and is part of the transportation industry. The company has a P/E ratio of 18.2, above the S&P 500 P/E ratio of 17.7. Shares are up 8.9% year to date as of the close of trading on Wednesday. Currently there are 8 analysts that rate Kirby a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Kirby as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, growth in earnings per share, notable return on equity, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Kirby Ratings Report now.

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3. As of noon trading, AutoNation (AN) is up $2.48 (5.5%) to $47.23 on heavy volume Thus far, 840,889 shares of AutoNation exchanged hands as compared to its average daily volume of 891,400 shares. The stock has ranged in price between $45.00-$47.30 after having opened the day at $45.50 as compared to the previous trading day's close of $44.75.

AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. AutoNation has a market cap of $5.5 billion and is part of the specialty retail industry. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are up 13.0% year to date as of the close of trading on Wednesday. Currently there are 2 analysts that rate AutoNation a buy, 2 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates AutoNation as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, increase in net income, revenue growth and reasonable valuation levels. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full AutoNation Ratings Report now.

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2. As of noon trading, Penn National Gaming (PENN) is up $2.14 (4.5%) to $50.06 on heavy volume Thus far, 1.8 million shares of Penn National Gaming exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $46.93-$51.21 after having opened the day at $47.00 as compared to the previous trading day's close of $47.92.

Penn National Gaming, Inc. owns and manages gaming and pari-mutuel properties in the United States and Canada. The company is involved in hotel, dining, retail, admissions, program sales, concessions, racing operations, and other ancillary activities. Penn National Gaming has a market cap of $3.7 billion and is part of the leisure industry. The company has a P/E ratio of 21.5, above the S&P 500 P/E ratio of 17.7. Shares are down 2.7% year to date as of the close of trading on Wednesday. Currently there are 12 analysts that rate Penn National Gaming a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Penn National Gaming as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Penn National Gaming Ratings Report now.

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1. As of noon trading, Yum Brands (YUM) is up $0.67 (1.0%) to $64.91 on average volume Thus far, 2.1 million shares of Yum Brands exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $64.02-$65.40 after having opened the day at $64.24 as compared to the previous trading day's close of $64.24.

YUM! Brands, Inc., together with its subsidiaries, operates quick service restaurants in the United States and internationally. Yum Brands has a market cap of $29.2 billion and is part of the leisure industry. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are down 3.3% year to date as of the close of trading on Wednesday. Currently there are 14 analysts that rate Yum Brands a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Yum Brands 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, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Yum Brands Ratings Report now.

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If you are interested in one of these 5 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).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

 

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