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.

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 16 points (0.1%) at 16,733 as of Monday, June 2, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,394 issues advancing vs. 1,564 declining with 187 unchanged.

The Services sector currently sits down 0.2% versus the S&P 500, which is unchanged. Top gainers within the sector include United Continental Holdings ( UAL), up 3.8%, Gannett ( GCI), up 2.9%, Melco Crown Entertainment ( MPEL), up 2.5%, Alliance Data Systems ( ADS), up 1.9% and Liberty Global ( LBTYK), up 1.5%. On the negative front, top decliners within the sector include Pandora Media ( P), down 2.4%, LATAM Airlines Group ( LFL), down 2.0%, SBA Communications ( SBAC), down 1.4%, Cencosud ( CNCO), down 1.2% and Visa ( V), down 0.6%.

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

3. Delta Air Lines ( DAL) is one of the companies pushing the Services sector higher today. As of noon trading, Delta Air Lines is up $0.70 (1.8%) to $40.61 on average volume. Thus far, 5.0 million shares of Delta Air Lines exchanged hands as compared to its average daily volume of 11.3 million shares. The stock has ranged in price between $39.76-$40.62 after having opened the day at $40.14 as compared to the previous trading day's close of $39.91.

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 $34.0 billion and is part of the transportation industry. Shares are up 45.3% year-to-date as of the close of trading on Friday. 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.

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2. As of noon trading, McDonald's ( MCD) is up $0.75 (0.7%) to $102.18 on light volume. Thus far, 1.7 million shares of McDonald's exchanged hands as compared to its average daily volume of 5.1 million shares. The stock has ranged in price between $101.32-$102.50 after having opened the day at $101.39 as compared to the previous trading day's close of $101.43.

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 $100.2 billion and is part of the leisure industry. Shares are up 4.5% 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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1. As of noon trading, Home Depot ( HD) is up $0.70 (0.9%) to $80.94 on average volume. Thus far, 2.7 million shares of Home Depot exchanged hands as compared to its average daily volume of 6.6 million shares. The stock has ranged in price between $80.17-$80.97 after having opened the day at $80.25 as compared to the previous trading day's close of $80.23.

The Home Depot, Inc. operates as a home improvement retailer. Home Depot has a market cap of $109.3 billion and is part of the retail industry. Shares are down 2.6% year-to-date as of the close of trading on Friday. Currently there are 13 analysts who rate Home Depot a buy, no analysts rate it a sell, and 5 rate it a hold.

TheStreet Ratings rates Home Depot as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, impressive record of earnings per share growth, increase in net income and increase in stock price during the past year. 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 Home Depot 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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