5 Services Stocks Pushing Sector Growth

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 153 points (1.0%) at 15,456 as of Tuesday, May 28, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,106 issues advancing vs. 846 declining with 109 unchanged.

The Services sector currently sits up 1.3% versus the S&P 500, which is up 0.9%. Top gainers within the sector include Liberty Media Corporation ( LMCA), up 14.0%, Tiffany ( TIF), up 3.5%, Hertz Global Holdings ( HTZ), up 3.4%, MGM Resorts International ( MGM), up 3.4% and Las Vegas Sands ( LVS), up 3.0%. On the negative front, top decliners within the sector include Delta Air Lines ( DAL), down 1.23, and FedEx Corporation ( FDX), down 0.85.

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

5. Walt Disney ( DIS) is one of the companies pushing the Services sector higher today. As of noon trading, Walt Disney is up $1.14 (1.74) to $66.63 on average volume Thus far, 3.8 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 $65.92-$66.68 after having opened the day at $65.98 as compared to the previous trading day's close of $65.49.

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 $117.9 billion and is part of the media industry. The company has a P/E ratio of 21.8, above the S&P 500 P/E ratio of 17.7. Shares are up 31.5% year to date as of the close of trading on Friday. 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.

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4. As of noon trading, Priceline.com ( PCLN) is up $10.47 (1.31) to $811.59 on average volume Thus far, 329,968 shares of Priceline.com exchanged hands as compared to its average daily volume of 704,000 shares. The stock has ranged in price between $810.00-$819.99 after having opened the day at $811.80 as compared to the previous trading day's close of $801.12.

priceline.com Incorporated operates as a online travel company. Priceline.com has a market cap of $40.1 billion and is part of the diversified services industry. The company has a P/E ratio of 27.7, above the S&P 500 P/E ratio of 17.7. Shares are up 29.1% year to date as of the close of trading on Friday. Currently there are 14 analysts that rate Priceline.com a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Priceline.com 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, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Priceline.com Ratings Report now.

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3. As of noon trading, Home Depot ( HD) is up $0.96 (1.22) to $79.95 on average volume Thus far, 3.9 million shares of Home Depot exchanged hands as compared to its average daily volume of 7.4 million shares. The stock has ranged in price between $79.85-$80.63 after having opened the day at $79.94 as compared to the previous trading day's close of $78.99.

The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $117.1 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 27.7% 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 11 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, revenue growth, notable return on equity, good cash flow from operations and compelling growth in net income. 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.

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2. As of noon trading, eBay ( EBAY) is up $0.93 (1.70) to $55.57 on average volume Thus far, 5.9 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 $55.21-$56.25 after having opened the day at $55.25 as compared to the previous trading day's close of $54.64.

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 $70.9 billion and is part of the retail industry. The company has a P/E ratio of 26.5, above the S&P 500 P/E ratio of 17.7. Shares are up 7.1% year to date as of the close of trading on Friday. 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.

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1. As of noon trading, Amazon.com ( AMZN) is up $7.45 (2.85) to $269.19 on average volume Thus far, 2.1 million shares of Amazon.com exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $266.00-$271.10 after having opened the day at $266.48 as compared to the previous trading day's close of $261.74.

Amazon.com, Inc. operates as an online retailer in North America and internationally. The company operates in two segments, North America and International. Amazon.com has a market cap of $119.2 billion and is part of the retail industry. Shares are up 4.3% year to date as of the close of trading on Friday. Currently there are 22 analysts that rate Amazon.com a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Amazon.com as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Amazon.com 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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