4 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 48 points (0.3%) at 16,465 as of Friday, Jan. 17, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 1,451 issues advancing vs. 1,447 declining with 177 unchanged.

The Services sector currently sits up 0.1% versus the S&P 500, which is down 0.1%. Top gainers within the sector include MGM Resorts International ( MGM), up 2.4%, Michael Kors Holdings ( KORS), up 2.4%, Visa ( V), up 2.2%, Melco Crown Entertainment ( MPEL), up 2.0% and Wynn Resorts ( WYNN), up 1.7%. On the negative front, top decliners within the sector include Atlas Air Worldwide Holdings ( AAWW), down 15.6%, Pandora Media ( P), down 3.0%, LKQ Corporation ( LKQ), down 2.7%, Delta Air Lines ( DAL), down 1.5% and Luxottica Group ( LUX), down 1.3%.

TheStreet would like to highlight 4 stocks pushing the sector higher today:

4. Norfolk Southern Corporation ( NSC) is one of the companies pushing the Services sector higher today. As of noon trading, Norfolk Southern Corporation is up $1.79 (2.0%) to $89.55 on average volume. Thus far, 1.2 million shares of Norfolk Southern Corporation exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $87.61-$89.69 after having opened the day at $87.78 as compared to the previous trading day's close of $87.76.

Norfolk Southern Corporation engages in the rail transportation of raw materials, intermediate products, and finished goods in the United States. Norfolk Southern Corporation has a market cap of $28.2 billion and is part of the transportation industry. The company has a P/E ratio of 16.0, below the S&P 500 P/E ratio of 17.7. Shares are down 5.5% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts who rate Norfolk Southern Corporation a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates Norfolk Southern Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, attractive valuation levels, 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 Norfolk Southern Corporation Ratings Report now.

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3. As of noon trading, Rite Aid Corporation ( RAD) is up $0.20 (3.6%) to $5.79 on heavy volume. Thus far, 21.9 million shares of Rite Aid Corporation exchanged hands as compared to its average daily volume of 25.7 million shares. The stock has ranged in price between $5.65-$5.96 after having opened the day at $5.67 as compared to the previous trading day's close of $5.59.

Rite Aid Corporation, through its subsidiaries, operates a chain of retail drugstores in the United States. Rite Aid Corporation has a market cap of $5.3 billion and is part of the retail industry. The company has a P/E ratio of 18.3, above the S&P 500 P/E ratio of 17.7. Shares are up 10.5% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Rite Aid Corporation a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Rite Aid Corporation as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including poor profit margins and weak operating cash flow. Get the full Rite Aid 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, Expedia ( EXPE) is up $2.27 (3.3%) to $70.75 on average volume. Thus far, 1.5 million shares of Expedia exchanged hands as compared to its average daily volume of 2.4 million shares. The stock has ranged in price between $69.45-$71.10 after having opened the day at $69.51 as compared to the previous trading day's close of $68.48.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $8.2 billion and is part of the leisure industry. The company has a P/E ratio of 68.1, above the S&P 500 P/E ratio of 17.7. Shares are down 1.7% year-to-date as of the close of trading on Thursday. Currently there are 6 analysts who rate Expedia a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Expedia as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Expedia 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, Sirius XM Holdings ( SIRI) is up $0.03 (0.8%) to $3.70 on light volume. Thus far, 23.2 million shares of Sirius XM Holdings exchanged hands as compared to its average daily volume of 68.2 million shares. The stock has ranged in price between $3.67-$3.71 after having opened the day at $3.67 as compared to the previous trading day's close of $3.67.

Sirius XM Holdings Inc. provides satellite radio services in the United States and Canada. Sirius XM Holdings has a market cap of $22.6 billion and is part of the media industry. The company has a P/E ratio of 52.7, above the S&P 500 P/E ratio of 17.7. Shares are up 5.2% year-to-date as of the close of trading on Thursday. Currently there are 5 analysts who rate Sirius XM Holdings a buy, 1 analyst rates it a sell, and 4 rate it a hold.

TheStreet Ratings rates Sirius XM Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, increase in stock price during the past year and notable return on equity. 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 Sirius XM 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.

If you are interested in one of these 4 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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