Services Stocks On The Rise With Help From 5 Stocks

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 12 points (0.1%) at 15,069 as of Wednesday, May 8, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,254 declining with 121 unchanged.

The Services sector currently is unchanged today versus the S&P 500, which is up 0.2%. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 11.1%, McKesson ( MCK), up 6.0%, Copa Holdings ( CPA), up 4.2%, Grupo Televisa S.A ( TV), up 2.9% and Fidelity National Information Services ( FIS), up 2.2%. On the negative front, top decliners within the sector include Zillow ( Z), down 9.93, CH Robinson Worldwide ( CHRW), down 6.95, Mercadolibre ( MELI), down 4.71, Tim Hortons ( THI), down 2.19 and InterContinental Hotels Group ( IHG), down 2.17.

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 $9.54 (10.29) to $102.34 on heavy volume Thus far, 5.7 million shares of Whole Foods Market exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $99.75-$103.72 after having opened the day at $100.70 as compared to the previous trading day's close of $92.80.

Whole Foods Market, Inc. owns and operates a chain of natural and organic foods supermarkets. The company offers produce, grocery, meat and poultry, seafood, bakery, prepared foods and catering, coffee and tea, nutritional supplements, and vitamins. Whole Foods Market has a market cap of $17.0 billion and is part of the retail industry. The company has a P/E ratio of 34.6, above the S&P 500 P/E ratio of 17.7. Shares are up 0.7% year to date as of the close of trading on Tuesday. Currently there are 12 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 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 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 Whole Foods Market Ratings Report now.

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4. As of noon trading, Delta Air Lines ( DAL) is up $0.66 (3.65) to $18.74 on heavy volume Thus far, 16.0 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 14.0 million shares. The stock has ranged in price between $18.25-$18.84 after having opened the day at $18.25 as compared to the previous trading day's close of $18.08.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $15.5 billion and is part of the transportation industry. The company has a P/E ratio of 17.0, below the S&P 500 P/E ratio of 17.7. Shares are up 52.3% year to date as of the close of trading on Tuesday. Currently there are 7 analysts that rate Delta Air Lines a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and good cash flow from operations. However, as a counter to these strengths, we find that the company's profit margins have been poor overall. Get the full Delta Air Lines Ratings Report now.

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3. As of noon trading, Union Pacific ( UNP) is up $1.37 (0.89) to $155.09 on average volume Thus far, 840,799 shares of Union Pacific exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $152.50-$155.21 after having opened the day at $153.05 as compared to the previous trading day's close of $153.72.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $70.7 billion and is part of the transportation industry. The company has a P/E ratio of 17.8, equal to the S&P 500 P/E ratio of 17.7. Shares are up 22.3% year to date as of the close of trading on Tuesday. Currently there are 16 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Union Pacific as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, growth in earnings per share, increase in net income and notable return on equity. 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 Union Pacific Ratings Report now.

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2. As of noon trading, J.C. Penney ( JCP) is up $1.37 (8.35) to $17.77 on heavy volume Thus far, 20.0 million shares of J.C. Penney exchanged hands as compared to its average daily volume of 19.8 million shares. The stock has ranged in price between $16.90-$17.88 after having opened the day at $16.93 as compared to the previous trading day's close of $16.40.

J. C. Penney Company, Inc., through its subsidiary, J. C. Penney Corporation, Inc., operates department stores. The company sells family apparel and footwear, accessories, fine and fashion jewelry, beauty products, and home furnishings. J.C. Penney has a market cap of $3.7 billion and is part of the retail industry. Shares are down 16.8% year to date as of the close of trading on Tuesday. Currently there are 3 analysts that rate J.C. Penney a buy, 5 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates J.C. Penney as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk. Get the full J.C. Penney Ratings Report now.

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1. As of noon trading, eBay ( EBAY) is up $0.77 (1.43) to $54.71 on light volume Thus far, 3.4 million shares of eBay exchanged hands as compared to its average daily volume of 11.2 million shares. The stock has ranged in price between $53.77-$54.80 after having opened the day at $54.01 as compared to the previous trading day's close of $53.94.

eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $70.2 billion and is part of the retail industry. The company has a P/E ratio of 26.3, above the S&P 500 P/E ratio of 17.7. Shares are up 6.1% year to date as of the close of trading on Tuesday. Currently there are 24 analysts that rate eBay a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates eBay as a buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full eBay 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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