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 down today with the Dow Jones Industrial Average ( ^DJI) trading down 125 points (-0.7%) at 16,899 as of Tuesday, July 8, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 971 issues advancing vs. 2,018 declining with 168 unchanged.

The Services sector currently sits down 1.5% versus the S&P 500, which is down 0.9%. A company within the sector that increased today was Royal Philips ( PHG), up 1.8%. On the negative front, top decliners within the sector include Pandora Media ( P), down 8.2%, Vipshop Holdings ( VIPS), down 6.9%, Ctrip.com International ( CTRP), down 5.9%, Melco Crown Entertainment ( MPEL), down 5.0% and MGM Resorts International ( MGM), down 4.4%.

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

3. Costco Wholesale ( COST) is one of the companies pushing the Services sector higher today. As of noon trading, Costco Wholesale is up $0.78 (0.7%) to $117.10 on average volume. Thus far, 1.1 million shares of Costco Wholesale exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $116.11-$117.14 after having opened the day at $116.45 as compared to the previous trading day's close of $116.32.

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 $51.0 billion and is part of the retail industry. Shares are down 2.2% year-to-date as of the close of trading on Monday. Currently there are 12 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, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Costco Wholesale Ratings Report now.

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2. As of noon trading, TJX Companies ( TJX) is up $0.31 (0.6%) to $53.72 on average volume. Thus far, 2.1 million shares of TJX Companies exchanged hands as compared to its average daily volume of 4.2 million shares. The stock has ranged in price between $53.13-$53.88 after having opened the day at $53.32 as compared to the previous trading day's close of $53.41.

The TJX Companies, Inc. operates as an off-price apparel and home fashions retailer in the United States and internationally. The company operates in four segments: Marmaxx, HomeGoods, TJX Canada, and TJX Europe. TJX Companies has a market cap of $37.7 billion and is part of the retail industry. Shares are down 16.2% year-to-date as of the close of trading on Monday. Currently there are 11 analysts who rate TJX Companies a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates TJX Companies as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full TJX Companies 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, Wal-Mart Stores ( WMT) is up $0.69 (0.9%) to $76.76 on average volume. Thus far, 4.2 million shares of Wal-Mart Stores exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $76.03-$76.98 after having opened the day at $76.09 as compared to the previous trading day's close of $76.07.

Wal-Mart Stores Inc. operates retail stores in various formats worldwide. The company operates through three segments: Walmart U.S., Walmart International, and Sam's Club. Wal-Mart Stores has a market cap of $244.2 billion and is part of the retail industry. Shares are down 3.3% year-to-date as of the close of trading on Monday. Currently there are 9 analysts who rate Wal-Mart Stores a buy, 1 analyst rates it a sell, and 9 rate it a hold.

TheStreet Ratings rates Wal-Mart Stores as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, reasonable valuation levels, increase in stock price during the past year 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 Wal-Mart Stores 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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