5 Stocks Advancing 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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 16,456 as of Friday, Jan. 3, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,718 issues advancing vs. 1,181 declining with 172 unchanged.

The Services sector currently sits up 0.4% versus the S&P 500, which is unchanged. Top gainers within the sector include Rite Aid Corporation ( RAD), up 0.4%, Team Health Holdings ( TMH), up 0.0%, Advance Auto Parts ( AAP), up 1.0%, United Continental Holdings ( UAL), up 1.4% and Caesars Entertainment ( CZR), up -0.7%. On the negative front, top decliners within the sector include Ctrip.com International ( CTRP), down 3.1%, Synnex Corporation ( SNX), down 0.3%, AerCap Holdings N.V ( AER), down 0.5%, GNC Holdings ( GNC), down 0.2% and Sears Holdings Corporation ( SHLD), down 2.8%.

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

5. McKesson ( MCK) is one of the companies pushing the Services sector higher today. As of noon trading, McKesson is up $0.71 (0.4%) to $161.40 on average volume. Thus far, 673,744 shares of McKesson exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $160.59-$162.03 after having opened the day at $161.48 as compared to the previous trading day's close of $160.69.

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 $37.0 billion and is part of the wholesale industry. Shares are up 65.7% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate McKesson a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates McKesson 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, 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 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, Michael Kors Holdings ( KORS) is up $0.60 (0.7%) to $81.19 on light volume. Thus far, 1.6 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 4.3 million shares. The stock has ranged in price between $80.20-$81.53 after having opened the day at $80.60 as compared to the previous trading day's close of $80.59.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. Michael Kors Holdings has a market cap of $16.4 billion and is part of the specialty retail industry. Shares are up 57.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate Michael Kors Holdings a buy, 1 analyst rates it a sell, and 3 rate it a hold.

TheStreet Ratings rates Michael Kors Holdings as a buy. 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, notable return on equity, expanding profit margins and impressive record of earnings per share growth. 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 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.

4. As of noon trading, Delta Air Lines ( DAL) is up $0.29 (1.1%) to $27.48 on average volume. Thus far, 8.6 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 13.0 million shares. The stock has ranged in price between $27.20-$27.65 after having opened the day at $27.23 as compared to the previous trading day's close of $27.19.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. Its route network is centered around a system of hub and international gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $23.1 billion and is part of the transportation industry. Shares are up 127.7% year to date as of the close of trading on Monday. Currently there are 8 analysts that rate Delta Air Lines a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, solid stock price performance, impressive record of earnings per share growth and revenue growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated. Get the full Delta Air Lines 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, McDonald's Corporation ( MCD) is up $0.02 (0.0%) to $97.03 on average volume. Thus far, 2.3 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $96.63-$97.08 after having opened the day at $96.95 as compared to the previous trading day's close of $97.01.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. Its restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's Corporation has a market cap of $96.4 billion and is part of the leisure industry. Shares are up 9.9% year to date as of the close of trading on Monday. Currently there are 10 analysts that rate McDonald's Corporation a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates McDonald's 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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full McDonald's 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, Netflix ( NFLX) is up $1.18 (0.3%) to $368.17 on average volume. Thus far, 1.4 million shares of Netflix exchanged hands as compared to its average daily volume of 3.4 million shares. The stock has ranged in price between $363.63-$369.15 after having opened the day at $365.50 as compared to the previous trading day's close of $366.99.

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 $21.8 billion and is part of the specialty retail industry. Shares are up 296.9% year to date as of the close of trading on Monday. 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).
null

If you liked this article you might like

House Committee: 2 Pharmacy Managers Sent 12.3 Million Opioid Doses to 1 Store

House Committee: 2 Pharmacy Managers Sent 12.3 Million Opioid Doses to 1 Store

Who Says There Are No Second Chances?

Who Says There Are No Second Chances?

Medical Supply Stocks Get Hit in Latest Example of the 'Amazon Effect'

Medical Supply Stocks Get Hit in Latest Example of the 'Amazon Effect'

Purdue Pharma to Downplay Opioids, Dump 50% of Sales Staff

Purdue Pharma to Downplay Opioids, Dump 50% of Sales Staff

Drug Supply Chain Stocks Dip After White House Recommendations on Drug Pricing

Drug Supply Chain Stocks Dip After White House Recommendations on Drug Pricing