5 Stocks Raising 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

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 20 points (-0.1%) at 15,298 as of Wednesday, June 19, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 2,604 issues advancing vs. 474 declining with 57 unchanged.

The Services sector currently sits down 0.45 versus the S&P 500, which is down 0.17. Top gainers within the sector include Vantiv ( VNTV), up 2.9%, DISH Network ( DISH), up 2.8%, Delhaize Group ( DEG), up 2.3%, Mercadolibre ( MELI), up 2.3% and Netflix ( NFLX), up 2.6%. On the negative front, top decliners within the sector include Tetra Tech ( TTEK), down 13.17, Gannett ( GCI), down 4.29, Louisiana-Pacific ( LPX), down 3.45, Arrow Electronics ( ARW), down 2.07 and Directv ( DTV), down 1.05.

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

5. Charter Communications ( CHTR) is one of the companies pushing the Services sector higher today. As of noon trading, Charter Communications is up $0.86 (0.73) to $118.81 on light volume Thus far, 126,553 shares of Charter Communications exchanged hands as compared to its average daily volume of 822,500 shares. The stock has ranged in price between $117.64-$118.96 after having opened the day at $118.12 as compared to the previous trading day's close of $117.95.

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Charter Communications has a market cap of $11.9 billion and is part of the media industry. Shares are up 54.7% year to date as of the close of trading on Tuesday. Currently there is 1 analyst that rates Charter Communications a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, disappointing return on equity and poor profit margins. Get the full Charter Communications 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, McKesson ( MCK) is up $1.03 (0.90) to $115.65 on light volume Thus far, 426,986 shares of McKesson exchanged hands as compared to its average daily volume of 1.1 million shares. The stock has ranged in price between $114.40-$115.73 after having opened the day at $114.79 as compared to the previous trading day's close of $114.62.

McKesson Corporation, together with its subsidiaries, delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry primarily in the United States. It operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $25.9 billion and is part of the wholesale industry. The company has a P/E ratio of 20.5, above the S&P 500 P/E ratio of 17.7. Shares are up 18.2% year to date as of the close of trading on Tuesday. Currently there are 8 analysts that rate McKesson a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, solid stock price performance, 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 has had sub par growth in net income. Get the full McKesson 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, L Brands ( LTD) is up $0.27 (0.52) to $52.59 on average volume Thus far, 1.3 million shares of L Brands exchanged hands as compared to its average daily volume of 2.8 million shares. The stock has ranged in price between $52.16-$53.14 after having opened the day at $52.32 as compared to the previous trading day's close of $52.32.

L Brands, Inc. operates as a specialty retailer of women's intimate and other apparel, beauty and personal care products, and accessories. L Brands has a market cap of $14.8 billion and is part of the retail industry. The company has a P/E ratio of 19.5, above the S&P 500 P/E ratio of 17.7. Shares are up 11.2% year to date as of the close of trading on Tuesday. Currently there are 12 analysts that rate L Brands a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates L Brands as a buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. 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 L Brands 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, FedEx Corporation ( FDX) is up $2.50 (2.51) to $101.98 on heavy volume Thus far, 3.0 million shares of FedEx Corporation exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $99.26-$103.47 after having opened the day at $100.96 as compared to the previous trading day's close of $99.48.

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 $31.2 billion and is part of the transportation industry. The company has a P/E ratio of 17.2, below the S&P 500 P/E ratio of 17.7. Shares are up 8.5% year to date as of the close of trading on Tuesday. Currently there are 15 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.

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 $0.45 (1.43) to $32.01 on heavy volume Thus far, 12.4 million shares of News Corporation exchanged hands as compared to its average daily volume of 14.5 million shares. The stock has ranged in price between $31.77-$32.09 after having opened the day at $31.97 as compared to the previous trading day's close of $31.56.

News Corporation operates as a diversified media company worldwide. News Corporation has a market cap of $47.4 billion and is part of the media industry. The company has a P/E ratio of 12.2, below the S&P 500 P/E ratio of 17.7. Shares are up 22.6% year to date as of the close of trading on Tuesday. Currently there are 20 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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