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 traded up today The three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading up 17 points (0.1%) at 16,712 as of Tuesday, May 13, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,351 issues advancing vs. 1,650 declining with 150 unchanged.

The Diversified Services industry as a whole closed the day down 0.8% versus the S&P 500, which was up 0.1%. Top gainers within the Diversified Services industry included

Universal Security Instruments

(

UUU

), up 1.8%,

General Employment

(

JOB

), up 4.7%,

SmartPros

(

SPRO

), up 1.9%,

Cambium Learning Group

(

ABCD

), up 5.4% and

Compx International

(

CIX

), up 4.8%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Compx International

(

CIX

) is one of the companies that pushed the Diversified Services industry higher today. Compx International was up $0.54 (4.8%) to $11.70 on heavy volume. Throughout the day, 30,927 shares of Compx International exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in a price between $11.00-$11.70 after having opened the day at $11.06 as compared to the previous trading day's close of $11.16.

CompX International Inc. manufactures and sells security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $23.8 million and is part of the services sector. Shares are down 29.6% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Compx International a buy, no analysts rate 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 Compx International as a

hold

. 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 and increase in net income. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 20.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.46, which clearly demonstrates the ability to cover short-term cash needs.
  • COMPX INTERNATIONAL INC 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, COMPX INTERNATIONAL INC increased its bottom line by earning $0.49 versus $0.28 in the prior year.
  • CIX has underperformed the S&P 500 Index, declining 19.65% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for COMPX INTERNATIONAL INC is currently lower than what is desirable, coming in at 30.23%. It has decreased from the same quarter the previous year. Regardless of the weak results of the gross profit margin, the net profit margin of 8.13% is above that of the industry average.

You can view the full analysis from the report here:

Compx International Ratings Report

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

At the close,

Cambium Learning Group

(

ABCD

) was up $0.12 (5.4%) to $2.34 on heavy volume. Throughout the day, 109,174 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 28,700 shares. The stock ranged in a price between $2.27-$2.40 after having opened the day at $2.35 as compared to the previous trading day's close of $2.22.

Cambium Learning Group, Inc. operates as an educational solutions and services company in the United States. It operates in four segments: Voyager Sopris Learning (VSL), Learning A-Z, ExploreLearning, and Kurzweil/IntelliTools. Cambium Learning Group has a market cap of $98.7 million and is part of the services sector. Shares are up 33.7% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Cambium Learning Group a buy, no analysts rate 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 Cambium Learning Group as a

sell

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on ABCD go as follows:

  • Net operating cash flow has declined marginally to $22.54 million or 2.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Diversified Consumer Services industry average, but is greater than that of the S&P 500. The net income increased by 93.5% when compared to the same quarter one year prior, rising from -$88.81 million to -$5.73 million.
  • ABCD, with its decline in revenue, slightly underperformed the industry average of 2.1%. Since the same quarter one year prior, revenues slightly dropped by 2.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CAMBIUM LEARNING GROUP INC is currently very high, coming in at 70.95%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -17.19% is in-line with the industry average.
  • This stock has increased by 130.50% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in ABCD do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here:

Cambium Learning Group Ratings Report

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

Universal Security Instruments

(

UUU

) was another company that pushed the Diversified Services industry higher today. Universal Security Instruments was up $0.08 (1.8%) to $4.43 on heavy volume. Throughout the day, 9,916 shares of Universal Security Instruments exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in a price between $4.32-$4.65 after having opened the day at $4.36 as compared to the previous trading day's close of $4.35.

Universal Security Instruments, Inc. designs, markets, and distributes safety and security products in the United States and Canada. Universal Security Instruments has a market cap of $9.5 million and is part of the services sector. Shares are up 0.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Universal Security Instruments a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Universal Security Instruments as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on UUU go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 1695.7% when compared to the same quarter one year ago, falling from $0.02 million to -$0.37 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electrical Equipment industry and the overall market, UNIVERSAL SECURITY INSTRUMNT's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $0.68 million or 45.83% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The gross profit margin for UNIVERSAL SECURITY INSTRUMNT is currently lower than what is desirable, coming in at 30.38%. Regardless of UUU's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UUU's net profit margin of -9.81% significantly underperformed when compared to the industry average.
  • The share price of UNIVERSAL SECURITY INSTRUMNT has not done very well: it is down 20.51% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here:

Universal Security Instruments Ratings Report

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

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.