3 Stocks Raising 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 55 points (0.3%) at 16,661 as of Tuesday, May 27, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,943 issues advancing vs. 1,024 declining with 173 unchanged.

The Services sector currently sits up 1.0% versus the S&P 500, which is up 0.5%. Top gainers within the sector include Moody's Corporation ( MCO), up 3.6%, Chipotle Mexican Grill ( CMG), up 2.8%, Expedia ( EXPE), up 2.9%, Melco Crown Entertainment ( MPEL), up 2.4% and Rite Aid ( RAD), up 2.2%. On the negative front, top decliners within the sector include LATAM Airlines Group ( LFL), down 2.4%, Companhia Brasileira De Distribuicao ( CBD), down 1.7%, AutoZone ( AZO), down 1.9%, Advance Auto Parts ( AAP), down 1.2% and Amazon.com ( AMZN), down 1.4%.

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

3. McDonald's ( MCD) is one of the companies pushing the Services sector higher today. As of noon trading, McDonald's is up $0.50 (0.5%) to $102.50 on light volume. Thus far, 1.7 million shares of McDonald's exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $102.07-$102.85 after having opened the day at $102.20 as compared to the previous trading day's close of $102.00.

McDonald's Corporation franchises and operates McDonald's restaurants in the United States, Europe, the Asia/Pacific, the Middle East, Africa, Canada, and Latin America. The company's restaurants offer various food items, soft drinks, coffee, and other beverages, as well as breakfast menus. McDonald's has a market cap of $100.8 billion and is part of the leisure industry. Shares are up 5.1% year-to-date as of the close of trading on Friday. Currently there are 10 analysts who rate McDonald's a buy, no analysts rate it a sell, and 10 rate it a hold.

TheStreet Ratings rates McDonald's 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, expanding profit margins, good cash flow from operations and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full McDonald's Ratings Report now.

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2. As of noon trading, Visa ( V) is up $1.26 (0.6%) to $213.33 on light volume. Thus far, 1.2 million shares of Visa exchanged hands as compared to its average daily volume of 3.5 million shares. The stock has ranged in price between $212.82-$214.50 after having opened the day at $212.99 as compared to the previous trading day's close of $212.07.

Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $105.9 billion and is part of the financial services industry. Shares are down 4.8% year-to-date as of the close of trading on Friday. Currently there are 22 analysts who rate Visa a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Ratings rates Visa 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, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Visa Ratings Report now.

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1. As of noon trading, Priceline Group ( PCLN) is up $48.65 (4.1%) to $1,245.77 on heavy volume. Thus far, 793,588 shares of Priceline Group exchanged hands as compared to its average daily volume of 963,300 shares. The stock has ranged in price between $1,206.16-$1,256.98 after having opened the day at $1,206.16 as compared to the previous trading day's close of $1,197.12.

The Priceline Group Inc. operates as an online travel company. Priceline Group has a market cap of $62.8 billion and is part of the diversified services industry. Shares are up 3.0% year-to-date as of the close of trading on Friday. Currently there are 16 analysts who rate Priceline Group a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Priceline Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Priceline Group 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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