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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 163 points (1.2%) at 13,275 as of Tuesday, Nov. 6, 2012, 12:34 PM ET. The NYSE advances/declines ratio sits at 2,126 issues advancing vs. 762 declining with 145 unchanged.

The Services sector currently sits up 0.6% versus the S&P 500, which is up 1.1%. Top gainers within the sector include Weight Watchers International ( WTW), up 17.9%, Vitamin Shoppe ( VSI), up 11.6%, Myriad Genetics ( MYGN), up 11.4%, Chipotle Mexican Grill ( CMG), up 5.5% and Fidelity National Information Services ( FIS), up 4.9%. On the negative front, top decliners within the sector include MakeMyTrip ( MMYT), down 21.1%, Cablevision Systems ( CVC), down 4.7%, Discovery Communications ( DISCK), down 2.8%, Charter Communications ( CHTR), down 2.7% and Directv ( DTV), down 2.0%.

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

5. MasterCard Incorporated ( MA) is one of the companies pushing the Services sector higher today. As of noon trading, MasterCard Incorporated is up $6.44 (1.4%) to $472.09 on light volume Thus far, 180,285 shares of MasterCard Incorporated exchanged hands as compared to its average daily volume of 689,300 shares. The stock has ranged in price between $467.19-$472.89 after having opened the day at $468.83 as compared to the previous trading day's close of $465.65.

MasterCard Incorporated, a payments and technology company, together with its subsidiaries, provides transaction processing and other payment-related services in the United States and internationally. MasterCard Incorporated has a market cap of $56.0 billion and is part of the diversified services industry. The company has a P/E ratio of 27.2, above the S&P 500 P/E ratio of 17.7. Shares are up 25.9% year to date as of the close of trading on Monday. Currently there are 23 analysts that rate MasterCard Incorporated a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates MasterCard Incorporated as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, growth in earnings per share and increase in net income. 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 MasterCard Incorporated Ratings Report now.

4. As of noon trading, Visa ( V) is up $3.01 (2.1%) to $144.51 on light volume Thus far, 848,117 shares of Visa exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $141.90-$144.84 after having opened the day at $142.24 as compared to the previous trading day's close of $141.50.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $75.6 billion and is part of the diversified services industry. The company has a P/E ratio of 45.4, above the S&P 500 P/E ratio of 17.7. Shares are up 39.4% year to date as of the close of trading on Monday. Currently there are 23 analysts that rate Visa a buy, 1 analyst rates it a sell, and 5 rate it a hold.

TheStreet Ratings rates Visa 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, increase in net income, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Visa Ratings Report now.

3. As of noon trading, Starbucks Corporation ( SBUX) is up $0.80 (1.6%) to $51.81 on average volume Thus far, 3.5 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 8.8 million shares. The stock has ranged in price between $50.89-$51.91 after having opened the day at $51.09 as compared to the previous trading day's close of $51.01.

Starbucks Corporation purchases and roasts whole bean coffees. It operates 6,705 company-operated stores and 4,082 licensed stores in the United States; and 2,326 company-operated stores and 3,890 licensed stores in Canada, the U.K., China, Germany, Thailand, and internationally. Starbucks Corporation has a market cap of $38.6 billion and is part of the leisure industry. The company has a P/E ratio of 28.4, above the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Starbucks Corporation 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, good cash flow from operations, increase in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Starbucks Corporation Ratings Report now.

2. As of noon trading, Wal-Mart Stores ( WMT) is up $0.95 (1.3%) to $74.09 on light volume Thus far, 2.4 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 6.9 million shares. The stock has ranged in price between $73.13-$74.28 after having opened the day at $73.18 as compared to the previous trading day's close of $73.14.

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. It operates retail stores, restaurants, discount stores, supermarkets, supercenters, hypermarkets, warehouse clubs, apparel stores, Sam's Clubs, and neighborhood markets, as well as walmart.com; and samsclub.com. Wal-Mart Stores has a market cap of $244.6 billion and is part of the retail industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 22.4% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Wal-Mart Stores a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Wal-Mart Stores Ratings Report now.

1. As of noon trading, Amazon.com ( AMZN) is up $2.75 (1.2%) to $237.08 on average volume Thus far, 1.4 million shares of Amazon.com exchanged hands as compared to its average daily volume of 3.3 million shares. The stock has ranged in price between $234.45-$237.75 after having opened the day at $235.41 as compared to the previous trading day's close of $234.33.

Amazon.com, Inc. operates as an online retailer in North America and internationally. It operates retail Websites, such as amazon.com and amazon.ca. The company serves consumers through its retail Websites and focuses on selection, price, and convenience. Amazon.com has a market cap of $105.3 billion and is part of the retail industry. The company has a P/E ratio of 2905.3, above the S&P 500 P/E ratio of 17.7. Shares are up 34.3% year to date as of the close of trading on Monday. Currently there are 23 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Amazon.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity. Get the full Amazon.com Ratings Report now.

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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