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 96 points (-0.6%) at 16,467 as of Friday, Aug. 1, 2014, 12:55 PM ET. The NYSE advances/declines ratio sits at 828 issues advancing vs. 2,201 declining with 119 unchanged.

The Services sector currently sits down 0.9% versus the S&P 500, which is down 0.6%. Top gainers within the sector include McKesson ( MCK), up 0.9%, Yum Brands ( YUM), up 0.8%, Walgreen ( WAG), up 0.8%, Time Warner ( TWX), up 0.6% and Kroger ( KR), up 0.6%. On the negative front, top decliners within the sector include Genesee & Wyoming ( GWR), down 4.2%, Melco Crown Entertainment ( MPEL), down 3.7%, Western Union ( WU), down 3.3%, LKQ ( LKQ), down 3.1% and MGM Resorts International ( MGM), down 3.1%.

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

3. Expedia ( EXPE) is one of the companies pushing the Services sector higher today. As of noon trading, Expedia is up $4.13 (5.2%) to $83.55 on heavy volume. Thus far, 5.1 million shares of Expedia exchanged hands as compared to its average daily volume of 1.6 million shares. The stock has ranged in price between $81.86-$84.85 after having opened the day at $82.18 as compared to the previous trading day's close of $79.42.

Expedia, Inc., together with its subsidiaries, operates as an online travel company in the United States and internationally. Expedia has a market cap of $9.6 billion and is part of the leisure industry. Shares are up 14.0% year-to-date as of the close of trading on Thursday. Currently there are 7 analysts who rate Expedia a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Expedia as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and compelling growth in net income. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet. Get the full Expedia 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, Cardinal Health ( CAH) is up $0.47 (0.7%) to $72.12 on average volume. Thus far, 989,391 shares of Cardinal Health exchanged hands as compared to its average daily volume of 2.0 million shares. The stock has ranged in price between $71.57-$72.81 after having opened the day at $71.63 as compared to the previous trading day's close of $71.65.

Cardinal Health, Inc., a healthcare services company, provides pharmaceutical and medical products and services in the United States and internationally. The company operates in two segments, Pharmaceutical and Medical. Cardinal Health has a market cap of $24.7 billion and is part of the wholesale industry. Shares are up 7.2% year-to-date as of the close of trading on Thursday. Currently there are 11 analysts who rate Cardinal Health a buy, no analysts rate it a sell, and 2 rate it a hold.

TheStreet Ratings rates Cardinal Health as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance 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 Cardinal Health 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, Starwood Hotels & Resorts Worldwide ( HOT) is up $2.28 (3.0%) to $79.12 on heavy volume. Thus far, 3.1 million shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 1.9 million shares. The stock has ranged in price between $78.74-$80.00 after having opened the day at $79.75 as compared to the previous trading day's close of $76.84.

Starwood Hotels & Resorts Worldwide, Inc. operates as a hotel and leisure company worldwide. The company owns, operates, and franchises luxury and upscale full-service hotels, resorts, residences, retreats, select-service hotels, and extended stay hotels under the St. Starwood Hotels & Resorts Worldwide has a market cap of $15.0 billion and is part of the leisure industry. Shares are down 3.3% year-to-date as of the close of trading on Thursday. Currently there are 15 analysts who rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and 6 rate it a hold.

TheStreet Ratings rates Starwood Hotels & Resorts Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, notable return on equity, reasonable valuation levels and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Starwood Hotels & Resorts Worldwide 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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