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 83 points (-0.5%) at 16,448 as of Tuesday, May 6, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,223 issues advancing vs. 1,760 declining with 164 unchanged.

The Services sector currently sits down 0.4% versus the S&P 500, which is down 0.4%. Top gainers within the sector include Office Depot ( ODP), up 16.7%, AerCap Holdings ( AER), up 4.1%, Moody's Corporation ( MCO), up 2.3%, Grupo Televisa SAB ( TV), up 1.1% and McGraw Hill Financial ( MHFI), up 0.8%. On the negative front, top decliners within the sector include AthenaHealth ( ATHN), down 13.4%, MWI Veterinary Supply ( MWIV), down 10.1%, YY ( YY), down 6.0%, Pandora Media ( P), down 5.9% and Discovery Communications ( DISCA), down 3.5%.

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

3. FedEx ( FDX) is one of the companies pushing the Services sector higher today. As of noon trading, FedEx is up $0.86 (0.6%) to $136.71 on light volume. Thus far, 691,438 shares of FedEx exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $135.05-$136.99 after having opened the day at $135.29 as compared to the previous trading day's close of $135.85.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx has a market cap of $40.5 billion and is part of the transportation industry. The company has a P/E ratio of 25.9, above 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 Monday. Currently there are 11 analysts who rate FedEx a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates FedEx 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, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full FedEx 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, Directv ( DTV) is up $2.75 (3.4%) to $82.59 on average volume. Thus far, 2.7 million shares of Directv exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $77.50-$82.69 after having opened the day at $80.00 as compared to the previous trading day's close of $79.84.

DIRECTV provides digital television entertainment services in the United States and Latin America. The company acquires, promotes, sells, and distributes digital entertainment programming primarily through satellite to residential and commercial subscribers. Directv has a market cap of $40.7 billion and is part of the media industry. The company has a P/E ratio of 15.4, below the S&P 500 P/E ratio of 17.7. Shares are up 15.6% year-to-date as of the close of trading on Monday. Currently there are 10 analysts who rate Directv a buy, 1 analyst rates it a sell, and 8 rate it a hold.

TheStreet Ratings rates Directv as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Directv 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, Delta Air Lines ( DAL) is up $0.41 (1.1%) to $37.96 on average volume. Thus far, 7.3 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 12.1 million shares. The stock has ranged in price between $37.85-$38.82 after having opened the day at $38.45 as compared to the previous trading day's close of $37.55.

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo worldwide. Its route network comprises various gateway airports in Amsterdam, Atlanta, Cincinnati, Detroit, Memphis, Minneapolis-St. Delta Air Lines has a market cap of $31.6 billion and is part of the transportation industry. The company has a P/E ratio of 3.0, below the S&P 500 P/E ratio of 17.7. Shares are up 36.7% year-to-date as of the close of trading on Monday. Currently there are 11 analysts who rate Delta Air Lines a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Delta Air Lines as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, reasonable valuation levels, solid stock price performance, compelling growth in net income and revenue growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Delta Air Lines 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).

null

More from Markets

Video: Jim Cramer on Apple, Procter & Gamble, Nucor and Acacia Communications

Video: Jim Cramer on Apple, Procter & Gamble, Nucor and Acacia Communications

Video: Jim Cramer Reveals Why Stocks Are Moving Lower Thursday

Video: Jim Cramer Reveals Why Stocks Are Moving Lower Thursday

Dow Falls, S&P 500 Lower as Amazon Rises, Apple and P&G Slump

Dow Falls, S&P 500 Lower as Amazon Rises, Apple and P&G Slump

Soaring Nickel Prices Could Be Bad News for Electric Carmakers Like Tesla

Soaring Nickel Prices Could Be Bad News for Electric Carmakers Like Tesla

Video: The Road to S&P 500 2,800 Is 'Slow and Choppy'

Video: The Road to S&P 500 2,800 Is 'Slow and Choppy'