3 Stocks Advancing The Services Sector

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 205 points (-1.2%) at 16,675 as of Thursday, July 31, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 243 issues advancing vs. 2,822 declining with 89 unchanged.

The Services sector currently sits down 1.5% versus the S&P 500, which is down 1.5%. On the negative front, top decliners within the sector include On Assignment ( ASGN), down 23.5%, Trinity Industries ( TRN), down 5.2%, Computer ( CSC), down 3.8%, Vipshop Holdings ( VIPS), down 3.7% and Shaw Communications ( SJR), down 3.2%.

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

3. LKQ ( LKQ) is one of the companies pushing the Services sector higher today. As of noon trading, LKQ is up $0.67 (2.6%) to $26.00 on heavy volume. Thus far, 2.0 million shares of LKQ exchanged hands as compared to its average daily volume of 1.7 million shares. The stock has ranged in price between $25.54-$26.45 after having opened the day at $25.70 as compared to the previous trading day's close of $25.33.

LKQ Corporation, together with its subsidiaries, provides replacement parts, components, and systems needed to repair cars and trucks in the United States, the United Kingdom, the Netherlands, Belgium, Northern France, Canada, Mexico, and Central America. LKQ has a market cap of $7.7 billion and is part of the automotive industry. Shares are down 23.0% year-to-date as of the close of trading on Wednesday. Currently there are 9 analysts who rate LKQ a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates LKQ as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Get the full LKQ 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, Discovery Communications ( DISCA) is up $1.57 (1.9%) to $85.28 on average volume. Thus far, 961,170 shares of Discovery Communications exchanged hands as compared to its average daily volume of 1.8 million shares. The stock has ranged in price between $81.10-$86.24 after having opened the day at $82.47 as compared to the previous trading day's close of $83.71.

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 $12.2 billion and is part of the media industry. Shares are down 7.4% year-to-date as of the close of trading on Wednesday. Currently there are 8 analysts who rate Discovery Communications a buy, no analysts rate it a sell, and 7 rate 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.

1. As of noon trading, McKesson ( MCK) is up $2.34 (1.2%) to $193.59 on heavy volume. Thus far, 1.2 million shares of McKesson exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $192.00-$195.89 after having opened the day at $193.15 as compared to the previous trading day's close of $191.25.

McKesson Corporation delivers pharmaceuticals, medical supplies, and health care information technologies to the healthcare industry in the United States and internationally. The company operates in two segments, McKesson Distribution Solutions and McKesson Technology Solutions. McKesson has a market cap of $44.3 billion and is part of the wholesale industry. Shares are up 18.5% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts who rate McKesson a buy, 1 analyst rates it a sell, and 2 rate it a hold.

TheStreet Ratings rates McKesson as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, solid stock price performance and good cash flow from operations. 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 McKesson 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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