5 Stocks Driving 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

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Services sector currently sits up 0.2% versus the S&P 500, which is down 0.09. Top gainers within the sector include Krispy Kreme Doughnuts ( KKD), up 16.6%, Liberty Media Corporation ( LMCA), up 14.0%, Guess ( GES), up 10.8%, Lions Gate Entertainment Corporation ( LGF), up 7.2% and Net Servicos De Comunicacao ( NETC), up 4.8%. On the negative front, top decliners within the sector include Companhia Brasileira De Distribuicao ( CBD), down 3.86, Delhaize Group ( DEG), down 2.64, Royal Caribbean Cruises ( RCL), down 1.76, Shaw Communications ( SJR), down 1.40 and Thomson Reuters Corporation ( TRI), down 1.19.

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

5. Kohl's ( KSS) is one of the companies pushing the Services sector higher today. As of noon trading, Kohl's is up $0.53 (1.04) to $51.65 on light volume Thus far, 634,658 shares of Kohl's exchanged hands as compared to its average daily volume of 2.6 million shares. The stock has ranged in price between $51.00-$51.82 after having opened the day at $51.08 as compared to the previous trading day's close of $51.12.

Kohl's Corporation operates department stores in the United States. Its stores offer private, exclusive, and national branded apparel, footwear, and accessories for women, men, and children; soft home products, such as sheets and pillows; and housewares targeted to middle-income customers. Kohl's has a market cap of $11.4 billion and is part of the retail industry. The company has a P/E ratio of 12.3, below the S&P 500 P/E ratio of 17.7. Shares are up 18.9% year to date as of the close of trading on Thursday. Currently there are 9 analysts that rate Kohl's a buy, 3 analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Kohl's as a buy. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, expanding profit margins, increase in stock price during the past year, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Kohl's Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

4. As of noon trading, Ross Stores ( ROST) is up $0.87 (1.35) to $65.54 on light volume Thus far, 483,838 shares of Ross Stores exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $64.33-$65.82 after having opened the day at $64.36 as compared to the previous trading day's close of $64.67.

Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions for the entire family. Ross Stores has a market cap of $14.3 billion and is part of the retail industry. The company has a P/E ratio of 17.7, equal to the S&P 500 P/E ratio of 17.7. Shares are up 20.4% year to date as of the close of trading on Thursday. Currently there are 8 analysts that rate Ross Stores a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Ross Stores 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, notable return on equity, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Ross Stores Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

3. As of noon trading, Gap ( GPS) is up $0.89 (2.23) to $40.88 on average volume Thus far, 1.8 million shares of Gap exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $39.96-$41.30 after having opened the day at $40.01 as compared to the previous trading day's close of $39.99.

The Gap, Inc. operates as an apparel retail company. It offers apparel, accessories, and personal care products for men, women, children, and babies under the Gap, Old Navy, Banana Republic, Piperlime, Athleta, and Intermix brands. The company operates through two segments, Stores and Direct. Gap has a market cap of $18.3 billion and is part of the retail industry. The company has a P/E ratio of 15.3, below the S&P 500 P/E ratio of 17.7. Shares are up 28.8% year to date as of the close of trading on Thursday. Currently there are 11 analysts that rate Gap a buy, 2 analysts rate it a sell, and 10 rate it a hold.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

2. As of noon trading, TJX Companies ( TJX) is up $0.38 (0.76) to $50.43 on light volume Thus far, 1.0 million shares of TJX Companies exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $49.85-$50.74 after having opened the day at $49.89 as compared to the previous trading day's close of $50.05.

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. The company operates in four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. TJX Companies has a market cap of $36.0 billion and is part of the retail industry. The company has a P/E ratio of 19.1, above the S&P 500 P/E ratio of 17.7. Shares are up 17.9% year to date as of the close of trading on Thursday. Currently there are 12 analysts that rate TJX Companies a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates TJX Companies as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, growth in earnings per share, revenue growth, 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 TJX Companies Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, News Corporation ( NWSA) is up $0.15 (0.46) to $32.57 on average volume Thus far, 8.2 million shares of News Corporation exchanged hands as compared to its average daily volume of 14.0 million shares. The stock has ranged in price between $32.09-$32.60 after having opened the day at $32.17 as compared to the previous trading day's close of $32.42.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $49.7 billion and is part of the media industry. The company has a P/E ratio of 12.8, below the S&P 500 P/E ratio of 17.7. Shares are up 28.6% year to date as of the close of trading on Thursday. Currently there are 19 analysts that rate News Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates News 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, notable return on equity, attractive valuation levels and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full News Corporation Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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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