3 Stocks Pushing The Services Sector Lower
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.The Services sector as a whole closed the day down 0.7% versus the S&P 500, which was up 0.6%. Laggards within the Services sector included Sport Chalet (SPCHB), down 6.8%, Discovery Communications (DISCB), down 5.8%, Sino-Global Shipping America (SINO), down 2.9%, VirtualScopics (VSCP), down 3.7% and Radio One (ROIA), down 6.0%.TheStreet Ratings Group would like to highlight 3 stocks that pushed the sector lower today:Sino-Global Shipping America (SINO) is one of the companies that pushed the Services sector lower today. Sino-Global Shipping America was down $0.07 (2.9%) to $2.33 on light volume. Throughout the day, 2,949 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 6,000 shares. The stock ranged in price between $2.26-$2.44 after having opened the day at $2.41 as compared to the previous trading day's close of $2.40. Sino-Global Shipping America, Ltd. provides shipping agency services for ships coming to and departing from Chinese ports. Sino-Global Shipping America has a market cap of $11.9 million and is part of the diversified services industry. Shares are down 4.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Sino-Global Shipping America a buy, 1 analyst rates it a sell, and none rate it a hold.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.TheStreet Ratings rates Sino-Global Shipping America as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.Highlights from TheStreet Ratings analysis on SINO go as follows:
- The gross profit margin for SINO-GLOBAL SHIPPING AMERICA is currently lower than what is desirable, coming in at 31.47%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.22% trails the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Transportation Infrastructure industry and the overall market, SINO-GLOBAL SHIPPING AMERICA's return on equity significantly trails that of both the industry average and the S&P 500.
- SINO, with its very weak revenue results, has greatly underperformed against the industry average of 7.9%. Since the same quarter one year prior, revenues plummeted by 61.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- SINO-GLOBAL SHIPPING AMERICA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, SINO-GLOBAL SHIPPING AMERICA continued to lose money by earning -$0.39 versus -$0.61 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 271.2% when compared to the same quarter one year prior, rising from -$0.29 million to $0.50 million.
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