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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 28 points (-0.2%) at 16,647 as of Wednesday, May 28, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,518 issues advancing vs. 1,472 declining with 153 unchanged.

The Services sector currently sits down 0.3% versus the S&P 500, which is unchanged. Top gainers within the sector include Golar LNG ( GLNG), up 2.9%, AutoZone ( AZO), up 2.5%, Ryanair Holdings ( RYAAY), up 2.2%, Cencosud ( CNCO), up 2.2% and Melco Crown Entertainment ( MPEL), up 2.1%. On the negative front, top decliners within the sector include Shutterstock ( SSTK), down 5.0%, Live Nation Entertainment ( LYV), down 3.9%, Ulta Salon Cosmetics & Fragrances ( ULTA), down 2.8%, Lowe's Companies ( LOW), down 2.4% and Ctrip.com International ( CTRP), down 2.4%.

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

3. Michael Kors Holdings ( KORS) is one of the companies pushing the Services sector higher today. As of noon trading, Michael Kors Holdings is up $1.68 (1.8%) to $97.42 on heavy volume. Thus far, 8.6 million shares of Michael Kors Holdings exchanged hands as compared to its average daily volume of 2.2 million shares. The stock has ranged in price between $91.80-$97.46 after having opened the day at $95.04 as compared to the previous trading day's close of $95.74.

Michael Kors Holdings Limited engages in the design, marketing, distribution, and retailing of branded women's apparel and accessories, and men's apparel. The company operates in three segments: Retail, Wholesale, and Licensing. Michael Kors Holdings has a market cap of $19.7 billion and is part of the specialty retail industry. Shares are up 17.9% year-to-date as of the close of trading on Tuesday. Currently there are 10 analysts who rate Michael Kors Holdings a buy, 2 analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Michael Kors Holdings 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, notable return on equity, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Michael Kors Holdings Ratings Report now.

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2. As of noon trading, United Continental Holdings ( UAL) is up $0.94 (2.2%) to $44.43 on light volume. Thus far, 1.3 million shares of United Continental Holdings exchanged hands as compared to its average daily volume of 5.0 million shares. The stock has ranged in price between $43.20-$44.45 after having opened the day at $43.61 as compared to the previous trading day's close of $43.49.

United Continental Holdings, Inc., through its subsidiaries, provides passenger and cargo transportation services. The company transports people and cargo through its mainline operations, which use jet aircraft with 118 seats, and its regional operations. United Continental Holdings has a market cap of $16.3 billion and is part of the transportation industry. Shares are up 15.0% year-to-date as of the close of trading on Tuesday. Currently there are 9 analysts who rate United Continental Holdings a buy, 2 analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates United Continental Holdings as a hold. The company's strengths can be seen in multiple areas, such as its notable return on equity, good cash flow from operations and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, generally higher debt management risk and poor profit margins. Get the full United Continental Holdings Ratings Report now.

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1. As of noon trading, Costco Wholesale ( COST) is up $0.74 (0.7%) to $114.61 on average volume. Thus far, 1.0 million shares of Costco Wholesale exchanged hands as compared to its average daily volume of 2.3 million shares. The stock has ranged in price between $113.96-$114.95 after having opened the day at $114.00 as compared to the previous trading day's close of $113.87.

Costco Wholesale Corporation, together with its subsidiaries, operates membership warehouses. The company offers branded and private-label products in a range of merchandise categories. Costco Wholesale has a market cap of $50.6 billion and is part of the retail industry. Shares are down 3.4% year-to-date as of the close of trading on Tuesday. Currently there are 11 analysts who rate Costco Wholesale a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Costco Wholesale as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Costco Wholesale 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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