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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 104 points (-0.6%) at 17,824 as of Wednesday, May 6, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 986 issues advancing vs. 2,035 declining with 119 unchanged.

The Services sector currently sits down 0.2% versus the S&P 500, which is down 0.3%. Top gainers within the sector include MoneyGram International ( MGI), up 39.0%, Western Union ( WU), up 6.3%, Wendy's ( WEN), up 5.4%, Lamar Advertising ( LAMR), up 3.8% and HSN ( HSNI), up 3.7%. On the negative front, top decliners within the sector include News ( NWS), down 6.2%, Starz ( STRZA), down 3.5%, Macquarie Infrastructure ( MIC), down 2.4%, Vipshop Holdings ( VIPS), down 1.8% and Ryanair Holdings ( RYAAY), down 1.7%.

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

3. Ross Stores ( ROST) is one of the companies pushing the Services sector higher today. As of noon trading, Ross Stores is up $0.65 (0.7%) to $101.19 on average volume. Thus far, 476,517 shares of Ross Stores exchanged hands as compared to its average daily volume of 1.2 million shares. The stock has ranged in price between $100.12-$101.32 after having opened the day at $100.53 as compared to the previous trading day's close of $100.54.

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Ross Stores, Inc., together with its subsidiaries, operates off-price retail apparel and home fashion stores under the Ross Dress for Less and dd's DISCOUNTS brand names in the United States. It primarily offers apparel, accessories, footwear, and home fashions. Ross Stores has a market cap of $21.0 billion and is part of the retail industry. Shares are up 7.5% year-to-date as of the close of trading on Tuesday. Currently there are 7 analysts who rate Ross Stores a buy, no analysts rate it a sell, and 13 rate it a hold.

TheStreet Ratings rates Ross Stores as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity. Get the full Ross Stores Ratings Report now.

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2. As of noon trading, Gap ( GPS) is up $0.52 (1.3%) to $39.88 on light volume. Thus far, 1.3 million shares of Gap exchanged hands as compared to its average daily volume of 3.8 million shares. The stock has ranged in price between $39.09-$39.88 after having opened the day at $39.45 as compared to the previous trading day's close of $39.36.

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The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brand names. Gap has a market cap of $16.8 billion and is part of the retail industry. Shares are down 4.9% year-to-date as of the close of trading on Tuesday. Currently there are 6 analysts who rate Gap a buy, 1 analyst rates it a sell, and 18 rate it a hold.

TheStreet Ratings rates Gap as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook. Get the full Gap Ratings Report now.

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1. As of noon trading, Dollar Tree Stores ( DLTR) is up $0.90 (1.2%) to $77.24 on light volume. Thus far, 766,705 shares of Dollar Tree Stores exchanged hands as compared to its average daily volume of 2.5 million shares. The stock has ranged in price between $76.10-$77.32 after having opened the day at $76.38 as compared to the previous trading day's close of $76.34.

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Dollar Tree, Inc. operates discount variety stores in the United States and Canada. Its stores offer merchandise at the fixed price of $1.00. Dollar Tree Stores has a market cap of $15.9 billion and is part of the retail industry. Shares are up 9.8% year-to-date as of the close of trading on Tuesday. Currently there are 10 analysts who rate Dollar Tree Stores a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Dollar Tree Stores 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, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Get the full Dollar Tree Stores Ratings Report now.

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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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