3 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 266 points (-2.0%) at 12,979 as of Wednesday, Nov. 7, 2012, 2:19 PM ET. The NYSE advances/declines ratio sits at 512 issues advancing vs. 2,488 declining with 87 unchanged.

The Services sector currently sits down 1.8% versus the S&P 500, which is down 1.9%. Top gainers within the sector include Time Warner ( TWX), up 4.5%, Henry Schein ( HSIC), up 2.1%, News Corporation ( NWSA), up 2.2% and Starbucks Corporation ( SBUX), up 0.7%. On the negative front, top decliners within the sector include Sirius XM Radio ( SIRI), down 3.4%, DISH Network ( DISH), down 3.1%, Kansas City Southern ( KSU), down 3.2%, Tyco International ( TYC), down 2.7% and Liberty Media Corporation ( LMCA), down 2.7%.

TheStreet Ratings group would like to highlight 3 stocks pushing the sector higher today:

3. News Corporation ( NWS) is one of the companies pushing the Services sector higher today. As of noon trading, News Corporation is up $0.53 (2.2%) to $25.12 on heavy volume Thus far, 2.9 million shares of News Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $24.50-$25.39 after having opened the day at $24.85 as compared to the previous trading day's close of $24.59.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $19.5 billion and is part of the media industry. The company has a P/E ratio of 51.8, above the S&P 500 P/E ratio of 17.7. Shares are up 34.0% year to date as of the close of trading on Tuesday. Currently there are 2 analysts that rate News Corporation a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates News Corporation 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, solid stock price performance 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 News Corporation Ratings Report now.

2. As of noon trading, Best Buy ( BBY) is up $0.62 (4.2%) to $15.57 on heavy volume Thus far, 7.7 million shares of Best Buy exchanged hands as compared to its average daily volume of 7.1 million shares. The stock has ranged in price between $14.96-$15.98 after having opened the day at $15.09 as compared to the previous trading day's close of $14.95.

Best Buy Co., Inc. operates as a retailer of consumer electronics, computing and mobile phone products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Best Buy has a market cap of $4.9 billion and is part of the retail industry. The company has a P/E ratio of -5.0, below the S&P 500 P/E ratio of 17.7. Shares are down 36.0% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Best Buy a buy, 1 analyst rates it a sell, and 17 rate it a hold.

TheStreet Ratings rates Best Buy as a hold. The company's strongest point has been its a solid financial position based on a variety of debt and liquidity measures that we have looked at. At the same time, however, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Best Buy Ratings Report now.

1. As of noon trading, McKesson ( MCK) is up $0.79 (0.8%) to $94.27 on average volume Thus far, 762,245 shares of McKesson exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $92.61-$94.29 after having opened the day at $93.06 as compared to the previous trading day's close of $93.48.

McKesson Corporation, together with its subsidiaries, delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry primarily in the United States. It operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $22.0 billion and is part of the wholesale industry. The company has a P/E ratio of 14.3, below the S&P 500 P/E ratio of 17.7. Shares are up 20.0% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate McKesson a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates McKesson 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, compelling growth in net income, notable return on equity and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full McKesson Ratings Report now.

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).

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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