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 35 points (0.3%) at 14,006 as of Tuesday, Feb. 12, 2013, 12:05 PM ET. The NYSE advances/declines ratio sits at 1,786 issues advancing vs. 1,060 declining with 154 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is up 0.1%. Top gainers within the sector include Net Servicos De Comunicacao ( NETC), up 2.7%, Moody's Corporation ( MCO), up 2.6%, United Rentals ( URI), up 2.5%, W.W. Grainger ( GWW), up 2.3% and MGM Resorts International ( MGM), up 1.6%. On the negative front, top decliners within the sector include Fidelity National Information Services ( FIS), down 3.0%, Verisk Analytics ( VRSK), down 1.6%, SBA Communications ( SBAC), down 1.3%, O'Reilly Automotive ( ORLY), down 1.2% and CSX ( CSX), down 0.7%.

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

5. Walgreen Company ( WAG) is one of the companies pushing the Services sector higher today. As of noon trading, Walgreen Company is up $0.25 (0.6%) to $41.73 on light volume Thus far, 1.6 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $41.59-$41.91 after having opened the day at $41.91 as compared to the previous trading day's close of $41.48.

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 $39.1 billion and is part of the retail industry. The company has a P/E ratio of 18.6, above the S&P 500 P/E ratio of 17.7. Shares are up 11.9% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 8 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. 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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4. As of noon trading, Time Warner ( TWX) is up $0.30 (0.6%) to $52.43 on average volume Thus far, 3.1 million shares of Time Warner exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $52.03-$52.60 after having opened the day at $52.05 as compared to the previous trading day's close of $52.13.

Time Warner Inc. operates as a media and entertainment company in the United States and internationally. It operates in three segments: Networks, Film and TV Entertainment, and Publishing. Time Warner has a market cap of $49.8 billion and is part of the media industry. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Time Warner a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Time Warner 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, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Time Warner Ratings Report now.

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3. As of noon trading, Lowe's Companies ( LOW) is up $0.80 (2.0%) to $39.86 on light volume Thus far, 3.3 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 10.7 million shares. The stock has ranged in price between $39.17-$39.91 after having opened the day at $39.27 as compared to the previous trading day's close of $39.06.

Lowe's Companies, Inc., together with its subsidiaries, operates as a home improvement retailer. It offers a range of products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $43.9 billion and is part of the retail industry. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are up 9.9% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, notable return on equity, reasonable valuation levels and good cash flow from operations. 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 Lowe's Companies Ratings Report now.

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2. As of noon trading, Home Depot ( HD) is up $0.87 (1.3%) to $67.25 on light volume Thus far, 1.6 million shares of Home Depot exchanged hands as compared to its average daily volume of 7.1 million shares. The stock has ranged in price between $66.52-$67.34 after having opened the day at $66.70 as compared to the previous trading day's close of $66.38.

The Home Depot, Inc., together with its subsidiaries, operates as a home improvement retailer. The company's stores sell building materials, and home improvement and lawn and garden products to do-it-yourself, do-it-for-me (at D-I-F-M), and professional customers. Home Depot has a market cap of $100.2 billion and is part of the retail industry. The company has a P/E ratio of 23.8, above the S&P 500 P/E ratio of 17.7. Shares are up 8.3% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Home Depot a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Home Depot 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 has had generally high debt management risk by most measures that we evaluated. Get the full Home Depot Ratings Report now.

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1. As of noon trading, Netflix ( NFLX) is up $3.07 (1.7%) to $180.96 on average volume Thus far, 2.4 million shares of Netflix exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $178.70-$183.56 after having opened the day at $180.66 as compared to the previous trading day's close of $177.89.

Netflix, Inc. provides Internet subscription services for TV shows and movies in the United States and internationally. The company offers its subscribers to watch unlimited TV shows and movies streamed over the Internet to their TVs, computers, and mobile devices. Netflix has a market cap of $10.1 billion and is part of the specialty retail industry. The company has a P/E ratio of 624.0, above the S&P 500 P/E ratio of 17.7. Shares are up 95.5% year to date as of the close of trading on Monday. Currently there are 6 analysts that rate Netflix a buy, 5 analysts rate it a sell, and 18 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow. Get the full Netflix 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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