5 Services Stocks Pushing The 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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 79 points (0.5%) at 15,467 as of Wednesday, May 22, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,746 issues advancing vs. 1,183 declining with 133 unchanged.

The Services sector currently sits up 0.3% versus the S&P 500, which is up 0.5%. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 14.0%, Saks Incorporated ( SKS), up 13.8%, Staples ( SPLS), up 4.8%, Home Depot ( HD), up 2.6% and Best Buy ( BBY), up 1.7%. On the negative front, top decliners within the sector include Target ( TGT), down 3.62, Priceline.com ( PCLN), down 1.81, SBA Communications ( SBAC), down 1.47, Netflix ( NFLX), down 1.23 and Moody's Corporation ( MCO), down 0.86.

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

5. Costco Wholesale Corporation ( COST) is one of the companies pushing the Services sector higher today. As of noon trading, Costco Wholesale Corporation is up $0.65 (0.57) to $114.13 on average volume Thus far, 1.3 million shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $113.33-$114.72 after having opened the day at $113.33 as compared to the previous trading day's close of $113.48.

Costco Wholesale Corporation engages in the operation of membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale Corporation has a market cap of $48.9 billion and is part of the retail industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 13.5% year to date as of the close of trading on Tuesday. Currently there are 11 analysts that rate Costco Wholesale Corporation a buy, 2 analysts rate it a sell, and 7 rate it a hold.

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

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4. As of noon trading, Union Pacific ( UNP) is up $2.33 (1.47) to $160.79 on average volume Thus far, 754,970 shares of Union Pacific exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $158.38-$161.00 after having opened the day at $158.73 as compared to the previous trading day's close of $158.46.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $74.5 billion and is part of the transportation industry. The company has a P/E ratio of 18.8, above the S&P 500 P/E ratio of 17.7. Shares are up 26.0% year to date as of the close of trading on Tuesday. Currently there are 15 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 the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Union Pacific Ratings Report now.

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3. As of noon trading, Walgreen Company ( WAG) is up $0.75 (1.50) to $50.86 on average volume Thus far, 3.5 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 6.2 million shares. The stock has ranged in price between $50.03-$51.20 after having opened the day at $50.09 as compared to the previous trading day's close of $50.11.

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 $47.1 billion and is part of the retail industry. The company has a P/E ratio of 22.2, above the S&P 500 P/E ratio of 17.7. Shares are up 35.4% year to date as of the close of trading on Tuesday. Currently there are 10 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 5 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 increase in net income, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Walgreen Company Ratings Report now.

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2. As of noon trading, Lowe's Companies ( LOW) is up $0.51 (1.20) to $42.96 on heavy volume Thus far, 12.1 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 8.5 million shares. The stock has ranged in price between $42.70-$43.84 after having opened the day at $43.39 as compared to the previous trading day's close of $42.45.

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 $46.1 billion and is part of the retail industry. The company has a P/E ratio of 25.1, above the S&P 500 P/E ratio of 17.7. Shares are up 19.5% year to date as of the close of trading on Tuesday. Currently there are 9 analysts that rate Lowe's Companies a buy, 1 analyst rates it a sell, and 10 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 solid stock price performance and notable return on equity. 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.

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1. As of noon trading, Walt Disney ( DIS) is up $0.44 (0.68) to $66.28 on average volume Thus far, 3.9 million shares of Walt Disney exchanged hands as compared to its average daily volume of 8.0 million shares. The stock has ranged in price between $65.70-$66.71 after having opened the day at $65.83 as compared to the previous trading day's close of $65.83.

The Walt Disney Company operates as an entertainment company worldwide. Its Media Networks segment engages in broadcast television network, television production and distribution, television stations, broadcast radio networks and stations, and publishing and digital operations. Walt Disney has a market cap of $119.1 billion and is part of the media industry. The company has a P/E ratio of 22.0, above the S&P 500 P/E ratio of 17.7. Shares are up 32.2% year to date as of the close of trading on Tuesday. Currently there are 14 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Walt Disney as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, notable return on equity and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Walt Disney 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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