3 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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 39 points (-0.2%) at 16,431 as of Monday, Jan. 6, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,317 issues advancing vs. 1,618 declining with 151 unchanged.

The Services sector currently sits down 0.4% versus the S&P 500, which is down 0.3%. Top gainers within the sector include Pandora Media ( P), up 9.7%, Sirius XM Radio ( SIRI), up 6.6%, Tyco International ( TYC), up 1.3%, Liberty Global ( LBTYA), up 0.9% and Royal Philips ( PHG), up 0.9%. On the negative front, top decliners within the sector include Whole Foods Market ( WFM), down 3.6%, eBay ( EBAY), down 3.0%, Omnicom Group ( OMC), down 2.2%, Netflix ( NFLX), down 1.8% and Canadian Pacific Railway ( CP), down 1.8%.

TheStreet would like to highlight 3 stocks pushing the sector higher today:

3. Melco Crown Entertainment ( MPEL) is one of the companies pushing the Services sector higher today. As of noon trading, Melco Crown Entertainment is up $0.57 (1.4%) to $40.20 on average volume. Thus far, 1.4 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $39.75-$40.58 after having opened the day at $39.97 as compared to the previous trading day's close of $39.63.

Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities in Macau. Melco Crown Entertainment has a market cap of $22.1 billion and is part of the leisure industry. The company has a P/E ratio of 52.8, above the S&P 500 P/E ratio of 17.7. Shares are up 1.1% year to date as of the close of trading on Friday. Currently there are 11 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment 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, impressive record of earnings per share growth, compelling growth in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Melco Crown Entertainment Ratings Report now.

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2. As of noon trading, AutoZone ( AZO) is up $7.03 (1.5%) to $482.53 on average volume. Thus far, 97,388 shares of AutoZone exchanged hands as compared to its average daily volume of 248,100 shares. The stock has ranged in price between $476.81-$483.30 after having opened the day at $478.51 as compared to the previous trading day's close of $475.50.

AutoZone, Inc. is engaged in retailing and distributing automotive replacement parts and accessories. AutoZone has a market cap of $16.0 billion and is part of the retail industry. The company has a P/E ratio of 16.5, below the S&P 500 P/E ratio of 17.7. Shares are down 0.5% year to date as of the close of trading on Friday. Currently there are 7 analysts that rate AutoZone a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates AutoZone 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, revenue growth, expanding profit margins and good cash flow from operations. 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 AutoZone 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, Walgreen Company ( WAG) is up $0.69 (1.2%) to $57.51 on average volume. Thus far, 2.3 million shares of Walgreen Company exchanged hands as compared to its average daily volume of 5.2 million shares. The stock has ranged in price between $56.71-$57.93 after having opened the day at $57.16 as compared to the previous trading day's close of $56.82.

Walgreen Co., together with its subsidiaries, operates a network of drugstores in the United States. It provides consumer goods and services, pharmacy, and health and wellness services through drugstores, as well as through mail, and by telephone and online. Walgreen Company has a market cap of $53.8 billion and is part of the retail industry. The company has a P/E ratio of 19.9, above the S&P 500 P/E ratio of 17.7. Shares are down 1.1% year to date as of the close of trading on Friday. Currently there are 12 analysts that rate Walgreen Company a buy, 1 analyst rates it a sell, and 7 rate it a hold.

TheStreet Ratings rates Walgreen Company 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, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Walgreen Company 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 3 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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