5 Services Stocks Moving The Sector Upward

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 26 points (0.2%) at 15,572 as of Tuesday, July 23, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 1,636 issues advancing vs. 1,285 declining with 117 unchanged.

The Services sector currently sits down 0.1% versus the S&P 500, which is down 0.1%. Top gainers within the sector include Wendy's ( WEN), up 10.8%, HSN ( HSNI), up 3.5%, Companhia Brasileira De Distribuicao ( CBD), up 1.5%, Thomson Reuters Corporation ( TRI), up 1.1% and Melco Crown Entertainment ( MPEL), up 1.0%. On the negative front, top decliners within the sector include Allegiant Travel Company ( ALGT), down 12.1%, Penn National Gaming ( PENN), down 7.0%, Domino's Pizza ( DPZ), down 4.7%, Sears Holdings Corporation ( SHLD), down 3.4% and Ryanair Holdings ( RYAAY), down 2.5%.

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

5. Discovery Communications ( DISCA) is one of the companies pushing the Services sector higher today. As of noon trading, Discovery Communications is up $0.75 (0.9%) to $85.12 on light volume. Thus far, 194,231 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $84.34-$85.21 after having opened the day at $88.65 as compared to the previous trading day's close of $84.37.

Discovery Communications, Inc. operates as a non fiction media company worldwide. It operates through three segments: U.S. Networks, International Networks, and Education. The company provides original and purchased content across various distribution platforms. Discovery Communications has a market cap of $12.3 billion and is part of the media industry. Shares are up 32.8% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Discovery Communications a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Discovery Communications 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, solid stock price performance, growth in earnings per share and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Discovery 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, Carnival Corporation ( CCL) is up $0.18 (0.5%) to $36.69 on light volume. Thus far, 1.6 million shares of Carnival Corporation exchanged hands as compared to its average daily volume of 4.6 million shares. The stock has ranged in price between $36.64-$36.83 after having opened the day at $36.71 as compared to the previous trading day's close of $36.51.

Carnival Corporation operates as a cruise and vacation company worldwide. The company operates in two segments, North America; and Europe, Australia, and Asia. Carnival Corporation has a market cap of $21.7 billion and is part of the leisure industry. Shares are down 0.7% year to date as of the close of trading on Monday. Currently there are 3 analysts that rate Carnival Corporation a buy, no analysts rate it a sell, and 12 rate it a hold.

TheStreet Ratings rates Carnival Corporation as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and feeble growth in the company's earnings per share. Get the full Carnival 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.

3. As of noon trading, Costco Wholesale Corporation ( COST) is up $0.79 (0.7%) to $118.84 on light volume. Thus far, 395,748 shares of Costco Wholesale Corporation exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $118.29-$118.99 after having opened the day at $118.37 as compared to the previous trading day's close of $118.05.

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 $51.6 billion and is part of the retail industry. Shares are up 19.6% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Costco Wholesale Corporation a buy, 2 analysts rate it a sell, and 8 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, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Costco Wholesale 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.

2. As of noon trading, Michael Kors Holdings ( KORS) is up $0.72 (1.1%) to $63.44 on light volume. Thus far, 1.1 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 3.6 million shares. The stock has ranged in price between $62.51-$63.66 after having opened the day at $62.94 as compared to the previous trading day's close of $62.72.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retail of branded women's apparel and accessories, and men's apparel. The company sells its products primarily under the names of Michael Kors, MICHAEL KORS, MICHAEL MICHAEL KORS, and KORS MICHAEL KORS. Michael Kors Holdings has a market cap of $12.6 billion and is part of the specialty retail industry. Shares are up 22.9% year to date as of the close of trading on Monday. Currently there are 13 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates Michael Kors Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, robust revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock itself is trading at a premium valuation. Get the full Michael Kors Holdings 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, Wal-Mart Stores ( WMT) is up $0.48 (0.6%) to $78.36 on light volume. Thus far, 2.3 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 7.0 million shares. The stock has ranged in price between $77.80-$78.52 after having opened the day at $77.96 as compared to the previous trading day's close of $77.87.

Wal-Mart Stores, Inc. operates retail stores in various formats worldwide. The company operates in three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $255.8 billion and is part of the retail industry. Shares are up 14.1% year to date as of the close of trading on Monday. Currently there are 12 analysts that rate Wal-Mart Stores a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, growth in earnings per share, increase in stock price during the past year and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Wal-Mart 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.

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).

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