3 Stocks Driving The Services Sector Higher

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 16 points (0.1%) at 16,549 as of Thursday, May 22, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,112 issues advancing vs. 834 declining with 184 unchanged.

The Services sector currently sits up 0.6% versus the S&P 500, which is up 0.4%. Top gainers within the sector include YY ( YY), up 8.8%, Williams-Sonoma ( WSM), up 8.4%, Dollar Tree Stores ( DLTR), up 7.4%, Zillow ( Z), up 5.1% and Signet Jewelers ( SIG), up 4.5%. On the negative front, top decliners within the sector include Apollo Education Group ( APOL), down 8.5%, Vipshop Holdings ( VIPS), down 2.6%, PetSmart ( PETM), down 1.8%, eBay ( EBAY), down 1.0% and TJX Companies ( TJX), down 0.8%.

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

3. MGM Resorts International ( MGM) is one of the companies pushing the Services sector higher today. As of noon trading, MGM Resorts International is up $0.59 (2.4%) to $24.78 on average volume. Thus far, 4.3 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 9.8 million shares. The stock has ranged in price between $24.28-$24.83 after having opened the day at $24.30 as compared to the previous trading day's close of $24.19.

MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. MGM Resorts International has a market cap of $11.7 billion and is part of the leisure industry. Shares are up 2.9% year-to-date as of the close of trading on Wednesday. Currently there are 13 analysts who rate MGM Resorts International a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates MGM Resorts International 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 MGM Resorts International Ratings Report now.

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2. As of noon trading, McKesson ( MCK) is up $1.44 (0.8%) to $184.71 on average volume. Thus far, 725,765 shares of McKesson exchanged hands as compared to its average daily volume of 1.4 million shares. The stock has ranged in price between $182.95-$185.41 after having opened the day at $183.57 as compared to the previous trading day's close of $183.27.

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 $41.5 billion and is part of the wholesale industry. Shares are up 13.6% year-to-date as of the close of trading on Wednesday. Currently there are 12 analysts who rate McKesson a buy, 1 analyst rates it a sell, and 3 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, growth in earnings per share, increase in net income, solid stock price performance and good cash flow from operations. 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 McKesson Ratings Report now.

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1. As of noon trading, Chipotle Mexican Grill ( CMG) is up $18.98 (3.8%) to $523.16 on average volume. Thus far, 352,971 shares of Chipotle Mexican Grill exchanged hands as compared to its average daily volume of 605,300 shares. The stock has ranged in price between $506.19-$524.55 after having opened the day at $506.19 as compared to the previous trading day's close of $504.18.

Chipotle Mexican Grill, Inc. develops and operates fast casual and fresh Mexican food restaurants. Its restaurants primarily offer burritos, tacos, burrito bowls, and salads. As of October 15, 2013, the company operated approximately 1,500 restaurants. Chipotle Mexican Grill, Inc. Chipotle Mexican Grill has a market cap of $15.4 billion and is part of the leisure industry. Shares are down 5.4% year-to-date as of the close of trading on Wednesday. Currently there are 13 analysts who rate Chipotle Mexican Grill a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Chipotle Mexican Grill as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Chipotle Mexican Grill 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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