3 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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 69 points (-0.4%) at 16,384 as of Monday, March 10, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 999 issues advancing vs. 1,928 declining with 160 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 Magna International ( MGA), up 0.7%, and TJX Companies ( TJX), up 0.6%. On the negative front, top decliners within the sector include Ctrip.com International ( CTRP), down 6.5%, Shutterstock ( SSTK), down 5.0%, Vipshop Holdings ( VIPS), down 4.5%, YY ( YY), down 4.0% and Netflix ( NFLX), down 3.1%.

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

3. United Rentals ( URI) is one of the companies pushing the Services sector higher today. As of noon trading, United Rentals is up $3.23 (3.6%) to $91.72 on heavy volume. Thus far, 2.0 million shares of United Rentals exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $90.62-$92.79 after having opened the day at $90.62 as compared to the previous trading day's close of $88.49.

United Rentals, Inc., through its subsidiaries, operates as an equipment rental company. It operates in two segments, General Rentals; and Trench Safety, Power and HVAC (heating, ventilating and air conditioning). United Rentals has a market cap of $8.2 billion and is part of the diversified services industry. Shares are up 13.5% year-to-date as of the close of trading on Friday. Currently there are 10 analysts who rate United Rentals a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates United Rentals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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 United Rentals Ratings Report now.

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2. As of noon trading, Southwest Airlines ( LUV) is up $0.26 (1.1%) to $23.36 on average volume. Thus far, 4.2 million shares of Southwest Airlines exchanged hands as compared to its average daily volume of 7.9 million shares. The stock has ranged in price between $23.10-$23.67 after having opened the day at $23.14 as compared to the previous trading day's close of $23.10.

Southwest Airlines Co. operates passenger airlines that provide scheduled air transportation services in the United States. As of December 31, 2012, the company operated 694 aircraft, including 606 Boeing 737 aircraft and 88 Boeing 717 aircraft. Southwest Airlines has a market cap of $16.2 billion and is part of the transportation industry. Shares are up 22.7% year-to-date as of the close of trading on Friday. Currently there are 9 analysts who rate Southwest Airlines a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Southwest Airlines 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Southwest Airlines Ratings Report now.

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1. As of noon trading, Charter Communications ( CHTR) is up $1.02 (0.8%) to $128.02 on light volume. Thus far, 423,481 shares of Charter Communications exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $126.18-$129.75 after having opened the day at $128.27 as compared to the previous trading day's close of $127.00.

Charter Communications, Inc., through its subsidiaries, provides entertainment, information, and communications solutions to residential and commercial customers in the United States. Charter Communications has a market cap of $13.4 billion and is part of the media industry. Shares are down 7.4% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Charter Communications a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Charter Communications as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Charter Communications 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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