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 89 points (-0.7%) at 12,919 as of Monday, Nov. 26, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 886 issues advancing vs. 2,023 declining with 120 unchanged.

The Services sector currently sits down 0.4% versus the S&P 500, which is down 0.7%. On the negative front, top decliners within the sector include Macy's ( M), down 3.8%, Whole Foods Market ( WFM), down 2.7%, Nordstrom ( JWN), down 2.7%, Target ( TGT), down 2.2% and LATAM Airlines Group S.A ( LFL), down 1.9%.

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

5. Kansas City Southern ( KSU) is one of the companies pushing the Services sector higher today. As of noon trading, Kansas City Southern is up $0.92 (1.2%) to $78.53 on average volume Thus far, 564,492 shares of Kansas City Southern exchanged hands as compared to its average daily volume of 889,300 shares. The stock has ranged in price between $77.12-$79.39 after having opened the day at $77.17 as compared to the previous trading day's close of $77.61.

Kansas City Southern, through its subsidiaries, engages in the freight rail transportation business. Kansas City Southern has a market cap of $8.4 billion and is part of the transportation industry. The company has a P/E ratio of 22.1, above the S&P 500 P/E ratio of 17.7. Shares are up 12.2% year to date as of the close of trading on Friday. Currently there are 9 analysts that rate Kansas City Southern a buy, 1 analyst rates it a sell, and 6 rate it a hold.

TheStreet Ratings rates Kansas City Southern as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Kansas City Southern Ratings Report now.

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