3 Services Stocks Pushing The 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 62 points (0.4%) at 17,123 as of Wednesday, July 16, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,670 issues advancing vs. 1,271 declining with 202 unchanged.

The Services sector currently sits up 0.3% versus the S&P 500, which is up 0.4%. Top gainers within the sector include Time Warner ( TWX), up 15.9%, and CBS ( CBS), up 2.1%. On the negative front, top decliners within the sector include TJX Companies ( TJX), down 1.9%, Target ( TGT), down 1.0% and Walt Disney ( DIS), down 0.9%.

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

3. Discovery Communications ( DISCK) is one of the companies pushing the Services sector higher today. As of noon trading, Discovery Communications is up $5.21 (6.7%) to $82.61 on heavy volume. Thus far, 529,983 shares of Discovery Communications exchanged hands as compared to its average daily volume of 693,800 shares. The stock has ranged in price between $79.27-$82.78 after having opened the day at $79.74 as compared to the previous trading day's close of $77.40.

Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Discovery Communications has a market cap of $5.8 billion and is part of the media industry. Shares are down 7.7% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Discovery Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full Discovery Communications 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.

2. As of noon trading, Canadian National Railway ( CNI) is up $0.65 (1.0%) to $66.58 on average volume. Thus far, 468,346 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 823,400 shares. The stock has ranged in price between $66.02-$66.86 after having opened the day at $66.10 as compared to the previous trading day's close of $65.93.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $54.1 billion and is part of the transportation industry. Shares are up 15.6% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate Canadian National Railway a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, good cash flow from operations, growth in earnings per share and increase in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Get the full Canadian National Railway 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, FedEx ( FDX) is up $1.57 (1.0%) to $153.47 on light volume. Thus far, 557,390 shares of FedEx exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $152.25-$153.96 after having opened the day at $152.40 as compared to the previous trading day's close of $151.90.

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FedEx has a market cap of $44.6 billion and is part of the transportation industry. Shares are up 5.7% year-to-date as of the close of trading on Tuesday. Currently there are 10 analysts who rate FedEx a buy, no analysts rate it a sell, and 9 rate it a hold.

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