3 Services Stocks Pushing Sector Growth

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 22 points (0.1%) at 17,388 as of Tuesday, Nov. 4, 2014, 2:05 PM ET. The NYSE advances/declines ratio sits at 1,085 issues advancing vs. 1,951 declining with 143 unchanged.

The Services sector currently sits down 0.5% versus the S&P 500, which is down 0.4%. Top gainers within the sector include Ryanair Holdings ( RYAAY), up 5.2%, Delta Air Lines ( DAL), up 3.7%, United Continental Holdings ( UAL), up 2.3%, Southwest Airlines ( LUV), up 2.0% and Wal-Mart Stores ( WMT), up 1.3%. On the negative front, top decliners within the sector include Priceline Group ( PCLN), down 8.6%, Discovery Communications ( DISCA), down 7.3%, Michael Kors Holdings ( KORS), down 7.9%, Foot Locker ( FL), down 5.2% and CBS ( CBS), down 4.1%.

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

3. Starbucks ( SBUX) is one of the companies pushing the Services sector higher today. As of noon trading, Starbucks is up $0.64 (0.8%) to $76.74 on heavy volume. Thus far, 3.7 million shares of Starbucks exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $75.50-$76.94 after having opened the day at $75.61 as compared to the previous trading day's close of $76.10.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. Its stores offer coffee and tea beverages, packaged roasted whole bean and ground coffees, single serve products, and juices and bottled water. Starbucks has a market cap of $56.8 billion and is part of the leisure industry. Shares are down 2.9% year-to-date as of the close of trading on Monday. Currently there are 16 analysts who rate Starbucks a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Starbucks as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity 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 Starbucks Ratings Report now.

STOCKS TO BUY: 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, United Parcel Service ( UPS) is up $1.63 (1.5%) to $107.27 on heavy volume. Thus far, 3.1 million shares of United Parcel Service exchanged hands as compared to its average daily volume of 3.1 million shares. The stock has ranged in price between $105.72-$108.00 after having opened the day at $105.75 as compared to the previous trading day's close of $105.64.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

United Parcel Service, Inc., a package delivery company, provides transportation, logistics, and financial services in the United States and internationally. It operates in three segments: U.S. Domestic Package, International Package, and Supply Chain & Freight. The U.S. United Parcel Service has a market cap of $74.1 billion and is part of the transportation industry. Shares are up 0.5% year-to-date as of the close of trading on Monday. Currently there are 9 analysts who rate United Parcel Service a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates United Parcel Service 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 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 United Parcel Service Ratings Report now.

STOCKS TO BUY: 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, McDonald's ( MCD) is up $0.80 (0.8%) to $94.41 on average volume. Thus far, 3.2 million shares of McDonald's exchanged hands as compared to its average daily volume of 6.0 million shares. The stock has ranged in price between $93.77-$94.50 after having opened the day at $93.93 as compared to the previous trading day's close of $93.61.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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 $92.0 billion and is part of the leisure industry. Shares are down 3.5% year-to-date as of the close of trading on Monday. Currently there are 6 analysts who rate McDonald's a buy, 1 analyst rates it a sell, and 13 rate it a hold.

TheStreet Ratings rates McDonald's as a buy. Among the primary strengths of the company is its expanding profit margins over time. 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.

STOCKS TO BUY: 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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