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 111 points (0.7%) at 16,536 as of Tuesday, Jan. 7, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 2,084 issues advancing vs. 856 declining with 147 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 Pandora Media ( P), up 6.5%, Vipshop Holdings ( VIPS), up 5.1%, MGM Resorts International ( MGM), up 4.6%, Ctrip.com International ( CTRP), up 4.5% and Melco Crown Entertainment ( MPEL), up 4.3%. On the negative front, top decliners within the sector include DISH Network ( DISH), down 1.8%, and Time Warner ( TWX), down 0.6%.

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

5. Starbucks Corporation ( SBUX) is one of the companies pushing the Services sector higher today. As of noon trading, Starbucks Corporation is up $1.18 (1.6%) to $77.35 on light volume. Thus far, 1.6 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 4.5 million shares. The stock has ranged in price between $76.47-$77.38 after having opened the day at $76.65 as compared to the previous trading day's close of $76.17.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Starbucks Corporation has a market cap of $58.0 billion and is part of the leisure industry. The company has a P/E ratio of 7695.0, above the S&P 500 P/E ratio of 17.7. Shares are down 2.8% year to date as of the close of trading on Monday. Currently there are 17 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Starbucks Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins. Get the full Starbucks 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.

4. As of noon trading, Lowe's Companies ( LOW) is up $0.48 (1.0%) to $48.74 on light volume. Thus far, 1.7 million shares of Lowe's Companies exchanged hands as compared to its average daily volume of 7.1 million shares. The stock has ranged in price between $48.26-$48.82 after having opened the day at $48.40 as compared to the previous trading day's close of $48.26.

Lowe's Companies, Inc. operates as a home improvement retailer. It offers products for maintenance, repair, remodeling, and home decorating. Lowe's Companies has a market cap of $51.2 billion and is part of the retail industry. The company has a P/E ratio of 23.2, above the S&P 500 P/E ratio of 17.7. Shares are down 2.6% year to date as of the close of trading on Monday. Currently there are 9 analysts that rate Lowe's Companies a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Lowe's Companies as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, revenue growth, notable return on equity, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Lowe's Companies 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, McDonald's Corporation ( MCD) is up $0.66 (0.7%) to $96.51 on average volume. Thus far, 2.2 million shares of McDonald's Corporation exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $96.13-$97.08 after having opened the day at $96.38 as compared to the previous trading day's close of $95.85.

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 $96.1 billion and is part of the leisure industry. The company has a P/E ratio of 17.4, below the S&P 500 P/E ratio of 17.7. Shares are down 1.2% 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.

2. As of noon trading, eBay ( EBAY) is up $0.99 (1.9%) to $52.77 on average volume. Thus far, 6.1 million shares of eBay exchanged hands as compared to its average daily volume of 12.6 million shares. The stock has ranged in price between $51.98-$52.79 after having opened the day at $52.39 as compared to the previous trading day's close of $51.78.

eBay Inc. provides online platforms, tools, and services to help individuals and merchants in online and mobile commerce and payments in the United States and internationally. eBay has a market cap of $69.0 billion and is part of the retail industry. The company has a P/E ratio of 25.4, above the S&P 500 P/E ratio of 17.7. Shares are down 5.6% year to date as of the close of trading on Monday. Currently there are 24 analysts that rate eBay a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates eBay 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, growth in earnings per share 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 eBay 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, Priceline.com ( PCLN) is up $18.76 (1.6%) to $1,158.29 on average volume. Thus far, 300,040 shares of Priceline.com exchanged hands as compared to its average daily volume of 608,800 shares. The stock has ranged in price between $1,142.00-$1,160.98 after having opened the day at $1,146.82 as compared to the previous trading day's close of $1,139.53.

priceline.com Incorporated operates as a online travel company. Priceline.com has a market cap of $58.3 billion and is part of the diversified services industry. The company has a P/E ratio of 32.7, above the S&P 500 P/E ratio of 17.7. Shares are down 2.0% year to date as of the close of trading on Monday. Currently there are 16 analysts that rate Priceline.com a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Priceline.com as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Priceline.com 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

3 Attractive ETFs for a Turbulent Market

3 Attractive ETFs for a Turbulent Market

How CVS Plans to Use Its Deal for Aetna to Transform Into Apple

How CVS Plans to Use Its Deal for Aetna to Transform Into Apple

Apple Shares Look Pretty Cheap Here

Apple Shares Look Pretty Cheap Here

Closing Bell: LIVE MARKETS BLOG

Closing Bell: LIVE MARKETS BLOG

Starbucks Stock Is as Cold as a Venti Iced Coffee

Starbucks Stock Is as Cold as a Venti Iced Coffee