3 Stocks Advancing 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 34 points (0.2%) at 16,585 as of Friday, May 9, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,493 issues advancing vs. 1,448 declining with 155 unchanged.

The Services sector currently sits up 0.5% versus the S&P 500, which is up 0.1%. Top gainers within the sector include Computer ( CSC), up 9.8%, AthenaHealth ( ATHN), up 5.9%, Melco Crown Entertainment ( MPEL), up 4.5%, Air Lease ( AL), up 3.8% and Interpublic Group of Companies ( IPG), up 2.6%. On the negative front, top decliners within the sector include Scientific Games ( SGMS), down 22.3%, Air Methods ( AIRM), down 10.6%, Tumi Holdings ( TUMI), down 8.0%, Shutterstock ( SSTK), down 6.0% and AMC Networks ( AMCX), down 4.3%.

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

3. Gap ( GPS) is one of the companies pushing the Services sector higher today. As of noon trading, Gap is up $1.48 (3.8%) to $40.72 on heavy volume. Thus far, 5.5 million shares of Gap exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $39.94-$41.24 after having opened the day at $41.09 as compared to the previous trading day's close of $39.24.

The Gap, Inc. operates as an apparel retail company worldwide. It provides apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Piperlime, Athleta, and Intermix brands. Gap has a market cap of $17.3 billion and is part of the retail industry. Shares are up 0.4% year-to-date as of the close of trading on Thursday. Currently there are 8 analysts who rate Gap a buy, no analysts rate it a sell, and 16 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures, increase in stock price during the past year 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 Gap Ratings Report now.

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2. As of noon trading, Kroger ( KR) is up $0.30 (0.7%) to $46.35 on light volume. Thus far, 1.1 million shares of Kroger exchanged hands as compared to its average daily volume of 4.4 million shares. The stock has ranged in price between $46.10-$46.42 after having opened the day at $46.11 as compared to the previous trading day's close of $46.05.

The Kroger Co., together with its subsidiaries, operates as a retailer worldwide. The company also manufactures and processes food for sale in its supermarkets. It operates retail food and drug stores, multi-department stores, jewelry stores, and convenience stores. Kroger has a market cap of $23.7 billion and is part of the retail industry. Shares are up 16.5% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts who rate Kroger a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Kroger as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance and notable return on equity. 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 Kroger 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, McKesson ( MCK) is up $3.28 (2.0%) to $170.00 on average volume. Thus far, 906,620 shares of McKesson exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $165.77-$170.24 after having opened the day at $165.96 as compared to the previous trading day's close of $166.72.

McKesson Corporation, together with its subsidiaries, delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry primarily in the United States. It operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $38.3 billion and is part of the wholesale industry. Shares are up 3.3% year-to-date as of the close of trading on Thursday. Currently there are 13 analysts who rate McKesson a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates McKesson 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 and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full McKesson 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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