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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 67 points (0.5%) at 13,019 as of Wednesday, Dec. 5, 2012, 11:50 AM ET. The NYSE advances/declines ratio sits at 1,464 issues advancing vs. 1,407 declining with 149 unchanged.

The Services sector currently sits down 0.1% versus the S&P 500, which is up 0.0%. Top gainers within the sector include Heartland Express ( HTLD), up 9.6%, Buckle Incorporated ( BKE), up 6.3%, Dillards ( DDS), up 4.7%, Canadian Pacific Railway ( CP), up 4.3% and Gap ( GPS), up 2.5%. On the negative front, top decliners within the sector include Pandora Media ( P), down 17.0%, New Oriental Education & Technology Group I ( EDU), down 4.5%, Penn National Gaming ( PENN), down 2.9%, J.C. Penney ( JCP), down 2.7% and Netflix ( NFLX), down 3.1%.

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

5. Whole Foods Market ( WFM) is one of the companies pushing the Services sector higher today. As of noon trading, Whole Foods Market is up $0.51 (0.6%) to $92.58 on light volume Thus far, 545,893 shares of Whole Foods Market exchanged hands as compared to its average daily volume of 1.5 million shares. The stock has ranged in price between $91.97-$92.82 after having opened the day at $92.28 as compared to the previous trading day's close of $92.07.

Whole Foods Market, Inc. engages in the ownership and operation of natural and organic food supermarkets. The company offers produce, seafood, grocery, meat and poultry, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. Whole Foods Market has a market cap of $17.1 billion and is part of the retail industry. The company has a P/E ratio of 36.7, above the S&P 500 P/E ratio of 17.7. Shares are up 32.8% year to date as of the close of trading on Tuesday. Currently there are 15 analysts that rate Whole Foods Market a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Whole Foods Market as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. 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 Whole Foods Market Ratings Report now.

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4. As of noon trading, CSX ( CSX) is up $0.18 (0.9%) to $19.82 on average volume Thus far, 3.9 million shares of CSX exchanged hands as compared to its average daily volume of 9.3 million shares. The stock has ranged in price between $19.72-$19.90 after having opened the day at $19.77 as compared to the previous trading day's close of $19.64.

CSX Corporation, together with its subsidiaries, provides rail-based transportation services. It offers traditional rail service and the transport of intermodal containers and trailers. CSX has a market cap of $20.2 billion and is part of the transportation industry. The company has a P/E ratio of 10.9, below the S&P 500 P/E ratio of 17.7. Shares are down 7.1% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate CSX a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates CSX as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, good cash flow from operations, growth in earnings per share, expanding profit margins and notable return on equity. 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 CSX Ratings Report now.

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3. As of noon trading, Tyco International ( TYC) is up $0.27 (1.0%) to $28.42 on light volume Thus far, 1.5 million shares of Tyco International exchanged hands as compared to its average daily volume of 6.8 million shares. The stock has ranged in price between $28.12-$28.50 after having opened the day at $28.24 as compared to the previous trading day's close of $28.15.

Tyco International Ltd. operates as a fire protection and security company. The company provides security products and services, fire protection and detection products and services, valves and controls, and other industrial products. Tyco International has a market cap of $13.0 billion and is part of the diversified services industry. Shares are down 10.5% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Tyco International a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Tyco International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself. Get the full Tyco International Ratings Report now.

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2. As of noon trading, Directv ( DTV) is up $0.42 (0.9%) to $49.74 on light volume Thus far, 1.5 million shares of Directv exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $49.30-$49.76 after having opened the day at $49.36 as compared to the previous trading day's close of $49.32.

DIRECTV provides digital television entertainment primarily in the United States and Latin America. The company engages in acquiring, promoting, selling, and distributing digital entertainment programming primarily via satellite to residential and commercial subscribers. Directv has a market cap of $29.8 billion and is part of the media industry. The company has a P/E ratio of 12.1, below the S&P 500 P/E ratio of 17.7. Shares are up 15.3% year to date as of the close of trading on Tuesday. Currently there are 13 analysts that rate Directv a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, increase in stock price during the past year, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Directv Ratings Report now.

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1. As of noon trading, Walgreen Company ( WAG) is up $0.82 (2.4%) to $35.09 on average volume Thus far, 4.5 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.3 million shares. The stock has ranged in price between $34.50-$35.36 after having opened the day at $34.55 as compared to the previous trading day's close of $34.27.

Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. Walgreen Company has a market cap of $32.4 billion and is part of the retail industry. The company has a P/E ratio of 14.2, below the S&P 500 P/E ratio of 17.7. Shares are up 3.7% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Walgreen Company as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, 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 Walgreen Company 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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