3 Services Stocks Pushing Sector Growth

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 205 points (-1.3%) at 15,494 as of Monday, Feb. 3, 2014, 11:55 AM ET. The NYSE advances/declines ratio sits at 659 issues advancing vs. 2,313 declining with 134 unchanged.

The Services sector currently sits down 1.9% versus the S&P 500, which is down 1.3%. A company within the sector that increased today was Ryanair Holdings ( RYAAY), up 3.8%. On the negative front, top decliners within the sector include Genuine Parts Company ( GPC), down 4.2%, United Continental Holdings ( UAL), down 3.0%, Grupo Televisa S.A.B ( TV), down 3.0%, CBS Corporation ( CBS), down 3.1% and Delta Air Lines ( DAL), down 2.5%.

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

3. Canadian National Railway ( CNI) is one of the companies pushing the Services sector higher today. As of noon trading, Canadian National Railway is up $0.19 (0.4%) to $53.69 on heavy volume. Thus far, 753,462 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 814,400 shares. The stock has ranged in price between $53.33-$54.45 after having opened the day at $53.90 as compared to the previous trading day's close of $53.50.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $44.1 billion and is part of the transportation industry. The company has a P/E ratio of 18.4, above the S&P 500 P/E ratio of 17.7. Shares are down 6.2% year-to-date as of the close of trading on Friday. Currently there are 4 analysts who rate Canadian National Railway a buy, no analysts rate it a sell, and 11 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, good cash flow from operations, increase in stock price during the past year and expanding profit margins. 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 Canadian National Railway Ratings Report now.

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2. As of noon trading, CarMax ( KMX) is up $1.40 (3.1%) to $46.51 on heavy volume. Thus far, 2.1 million shares of CarMax exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $45.29-$46.90 after having opened the day at $45.30 as compared to the previous trading day's close of $45.11.

CarMax, Inc., through its subsidiaries, operates as a retailer of used vehicles in the United States. It operates in two segments, CarMax Sales Operations and CarMax Auto Finance. CarMax has a market cap of $10.1 billion and is part of the specialty retail industry. The company has a P/E ratio of 20.6, above the S&P 500 P/E ratio of 17.7. Shares are down 4.1% year-to-date as of the close of trading on Friday. Currently there are 6 analysts who rate CarMax a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates CarMax as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full CarMax 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, Time Warner Cable ( TWC) is up $1.55 (1.2%) to $134.82 on average volume. Thus far, 2.0 million shares of Time Warner Cable exchanged hands as compared to its average daily volume of 2.9 million shares. The stock has ranged in price between $134.31-$135.90 after having opened the day at $135.32 as compared to the previous trading day's close of $133.27.

Time Warner Cable Inc., together with its subsidiaries, offers video, high-speed data, and voice services to residential and business service customers over its broadband cable systems in the United States. Time Warner Cable has a market cap of $37.8 billion and is part of the media industry. The company has a P/E ratio of 20.3, above the S&P 500 P/E ratio of 17.7. Shares are down 1.6% year-to-date as of the close of trading on Friday. Currently there are 9 analysts who rate Time Warner Cable a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Time Warner Cable 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, solid stock price performance and growth in earnings per share. 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 Time Warner Cable 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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