5 Stocks Improving Performance Of The Services Sector

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 up today with the Dow Jones Industrial Average ( ^DJI) trading up 3 points (0.0%) at 14,977 as of Monday, May 6, 2013, 12:49 PM ET. The NYSE advances/declines ratio sits at 1,675 issues advancing vs. 1,221 declining with 157 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.2%. Top gainers within the sector include Renren ( RENN), up 14.0%, Liberty Media Corporation ( LMCA), up 8.3%, Alaska Air Group ( ALK), up 5.9%, United Rentals ( URI), up 3.0% and J.B. Hunt Transport Services ( JBHT), up 2.1%. On the negative front, top decliners within the sector include WEX ( WEX), down 6.58, WEX ( WXS), down 6.58, Michael Kors Holdings ( KORS), down 1.05, Netflix ( NFLX), down 0.93 and MasterCard Incorporated ( MA), down 1.01.

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

5. FedEx Corporation ( FDX) is one of the companies pushing the Services sector higher today. As of noon trading, FedEx Corporation is up $1.37 (1.45) to $95.89 on heavy volume Thus far, 1.9 million shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $94.74-$96.80 after having opened the day at $95.10 as compared to the previous trading day's close of $94.52.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx Corporation has a market cap of $29.2 billion and is part of the transportation industry. The company has a P/E ratio of 16.2, below the S&P 500 P/E ratio of 17.7. Shares are up 3.1% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate FedEx Corporation a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates FedEx Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations 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 FedEx Corporation Ratings Report now.

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4. As of noon trading, Dollar General Corporation ( DG) is up $1.23 (2.34) to $53.72 on light volume Thus far, 1.2 million shares of Dollar General Corporation exchanged hands as compared to its average daily volume of 4.8 million shares. The stock has ranged in price between $53.05-$53.93 after having opened the day at $53.11 as compared to the previous trading day's close of $52.49.

Dollar General Corporation, a discount retailer, engages in the provision of various merchandise products in the United States. Dollar General Corporation has a market cap of $17.1 billion and is part of the retail industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Dollar General Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Dollar General Corporation as a buy. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Dollar General Corporation Ratings Report now.

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3. As of noon trading, United Parcel Service Inc (UPS) Class B ( UPS) is up $1.08 (1.25) to $87.17 on average volume Thus far, 1.6 million shares of United Parcel Service Inc (UPS) Class B exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $86.07-$87.55 after having opened the day at $86.20 as compared to the previous trading day's close of $86.09.

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain and Freight. The U.S. United Parcel Service Inc (UPS) Class B has a market cap of $61.9 billion and is part of the transportation industry. The company has a P/E ratio of 99.2, above the S&P 500 P/E ratio of 17.7. Shares are up 16.8% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate United Parcel Service Inc (UPS) Class B a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates United Parcel Service Inc (UPS) Class B as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth and growth in earnings per share. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full United Parcel Service Inc (UPS) Class B Ratings Report now.

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2. As of noon trading, Lowe's Companies ( LOW) is up $0.30 (0.76) to $39.89 on average volume Thus far, 3.7 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 8.6 million shares. The stock has ranged in price between $39.50-$40.06 after having opened the day at $39.54 as compared to the previous trading day's close of $39.59.

Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $42.3 billion and is part of the retail industry. The company has a P/E ratio of 23.0, above the S&P 500 P/E ratio of 17.7. Shares are up 11.5% year to date as of the close of trading on Friday. Currently there are 10 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 8 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 notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Lowe's Companies Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

1. As of noon trading, Home Depot ( HD) is up $0.76 (1.03) to $74.72 on light volume Thus far, 2.2 million shares of Home Depot exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $73.88-$74.84 after having opened the day at $73.96 as compared to the previous trading day's close of $73.96.

The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $108.7 billion and is part of the retail industry. The company has a P/E ratio of 24.4, above the S&P 500 P/E ratio of 17.7. Shares are up 19.6% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Home Depot a buy, no analysts rate it a sell, and 10 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 impressive record of earnings per share growth, compelling growth in net income, revenue growth, notable return on equity and good cash flow from operations. 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 Home Depot Ratings Report now.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.

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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