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

Two out of the three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 40 points (0.3%) at 13,114 as of Friday, Dec. 7, 2012, 11:49 AM ET. The NYSE advances/declines ratio sits at 1,438 issues advancing vs. 1,420 declining with 156 unchanged.

The Services sector currently is unchanged today versus the S&P 500, which is up 0.1%. Top gainers within the sector include Geo Group ( GEO), up 7.0%, Sears Holdings Corporation ( SHLD), up 3.8%, McGraw-Hill Companies Incorporated ( MHP), up 2.4%, Melco Crown Entertainment ( MPEL), up 1.9% and Grupo Televisa S.A ( TV), up 1.4%. On the negative front, top decliners within the sector include Ryanair Holdings ( RYAAY), down 1.8%, Fidelity National Information Services ( FIS), down 1.8%, CSX ( CSX), down 1.3%, Wynn Resorts ( WYNN), down 1.3% and Yum Brands ( YUM), down 0.8%.

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

3. Canadian National Railway ( CNI) is one of the companies pushing the Services sector higher today. As of noon trading, Canadian National Railway is up $1.00 (1.1%) to $91.35 on average volume Thus far, 310,627 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 545,100 shares. The stock has ranged in price between $90.11-$91.49 after having opened the day at $90.36 as compared to the previous trading day's close of $90.35.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $38.9 billion and is part of the transportation industry. The company has a P/E ratio of 14.7, below the S&P 500 P/E ratio of 17.7. Shares are up 14.8% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Canadian National Railway a buy, 2 analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, good cash flow from operations and growth in earnings per share. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Canadian National Railway Ratings Report now.

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2. As of noon trading, Carnival Corporation ( CCL) is up $0.25 (0.7%) to $37.81 on light volume Thus far, 985,758 shares of Carnival Corporation exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $37.49-$37.84 after having opened the day at $37.59 as compared to the previous trading day's close of $37.56.

Carnival Corporation operates as a cruise and vacation company worldwide. Carnival Corporation has a market cap of $22.1 billion and is part of the leisure industry. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are up 14.0% year to date as of the close of trading on Thursday. Currently there are 7 analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

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

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1. As of noon trading, Time Warner Cable ( TWC) is up $0.45 (0.5%) to $94.84 on light volume Thus far, 396,386 shares of Time Warner Cable exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $94.47-$95.10 after having opened the day at $94.71 as compared to the previous trading day's close of $94.39.

Time Warner Cable Inc., together with its subsidiaries, operates as a cable operator in the United States. It offers video, high-speed data, and voice services over its broadband cable systems to residential and business service customers. Time Warner Cable has a market cap of $28.5 billion and is part of the media industry. The company has a P/E ratio of 13.6, below the S&P 500 P/E ratio of 17.7. Shares are up 48.5% year to date as of the close of trading on Thursday. Currently there are 16 analysts that rate Time Warner Cable a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Time Warner Cable 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, revenue growth 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 Time Warner Cable Ratings Report now.

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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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