5 Stocks Improving Performance Of The Services Sector

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.

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 83 points (0.5%) at 16,304 as of Monday, Dec. 23, 2013, 11:55 AM ET. The NYSE advances/declines ratio sits at 2,307 issues advancing vs. 673 declining with 118 unchanged.

The Services sector currently sits up 0.8% versus the S&P 500, which is up 0.6%. Top gainers within the sector include Darden Restaurants ( DRI), up 6.6%, Rite Aid Corporation ( RAD), up 5.5%, Vipshop Holdings ( VIPS), up 5.0%, Pandora Media ( P), up 4.7% and Mercadolibre ( MELI), up 3.7%. On the negative front, top decliners within the sector include Steiner Leisure ( STNR), down 15.4%, Michael Kors Holdings ( KORS), down 4.6%, Whole Foods Market ( WFM), down 1.6%, Target ( TGT), down 1.2% and Cencosud ( CNCO), down 1.2%.

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

5. Hertz Global Holdings ( HTZ) is one of the companies pushing the Services sector higher today. As of noon trading, Hertz Global Holdings is up $0.46 (1.8%) to $26.21 on light volume. Thus far, 1.7 million shares of Hertz Global Holdings exchanged hands as compared to its average daily volume of 11.1 million shares. The stock has ranged in price between $25.77-$26.22 after having opened the day at $25.88 as compared to the previous trading day's close of $25.75.

Hertz Global Holdings, Inc., through its subsidiaries, engages in the car and equipment rental businesses worldwide. The company operates in two segments, Car Rental and Equipment Rental. Hertz Global Holdings has a market cap of $11.4 billion and is part of the diversified services industry. The company has a P/E ratio of 36.8, above the S&P 500 P/E ratio of 17.7. Shares are up 58.3% year to date as of the close of trading on Friday. Currently there are 5 analysts that rate Hertz Global Holdings a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Hertz Global Holdings as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Hertz Global 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.

4. As of noon trading, Union Pacific ( UNP) is up $1.20 (0.7%) to $164.80 on light volume. Thus far, 363,708 shares of Union Pacific exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $163.04-$164.95 after having opened the day at $163.51 as compared to the previous trading day's close of $163.60.

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, provides rail transportation services in North America. Union Pacific has a market cap of $75.6 billion and is part of the transportation industry. The company has a P/E ratio of 18.1, above the S&P 500 P/E ratio of 17.7. Shares are up 30.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Union Pacific a buy, no analysts rate it a sell, and 7 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, notable return on equity 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 Union Pacific 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, Walt Disney ( DIS) is up $0.46 (0.6%) to $72.86 on light volume. Thus far, 2.0 million shares of Walt Disney exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $72.66-$73.02 after having opened the day at $72.89 as compared to the previous trading day's close of $72.40.

The Walt Disney Company operates as an entertainment company worldwide. The company operates in five segments: Media Networks, Parks and Resorts, Studio Entertainment, Consumer Products, and Interactive. Walt Disney has a market cap of $128.2 billion and is part of the media industry. The company has a P/E ratio of 21.6, above the S&P 500 P/E ratio of 17.7. Shares are up 46.6% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Walt Disney a buy, no analysts rate it a sell, and 10 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, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Walt Disney 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, Visa ( V) is up $2.33 (1.1%) to $218.30 on light volume. Thus far, 885,894 shares of Visa exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $216.55-$218.83 after having opened the day at $216.99 as compared to the previous trading day's close of $215.97.

Visa Inc., a payments technology company, engages in the operation of retail electronic payments network worldwide. It facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $109.3 billion and is part of the financial services industry. The company has a P/E ratio of 28.5, above the S&P 500 P/E ratio of 17.7. Shares are up 42.5% year to date as of the close of trading on Friday. Currently there are 16 analysts that rate Visa a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Visa 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, expanding profit margins, good cash flow from operations 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 Visa 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, Netflix ( NFLX) is up $6.13 (1.6%) to $381.80 on light volume. Thus far, 967,543 shares of Netflix exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $376.63-$382.88 after having opened the day at $378.69 as compared to the previous trading day's close of $375.67.

Netflix, Inc. provides Internet television network service that enables subscribers to stream TV shows and movies directly on TVs, computers, and mobile devices in the United States and internationally. Netflix has a market cap of $22.3 billion and is part of the specialty retail industry. The company has a P/E ratio of 316.6, above the S&P 500 P/E ratio of 17.7. Shares are up 306.9% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Netflix a buy, 4 analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Netflix as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and generally higher debt management risk. Get the full Netflix 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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