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.

One out of the three major indices traded up today 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 down 30.21 points (-0.2%) at 16,882 as of Wednesday, July 30, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,028 issues advancing vs. 1,986 declining with 144 unchanged.

The Diversified Services industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.1%. Top gainers within the Diversified Services industry included

Universal Security Instruments

(

UUU

), up 2.7%,

NV5 Holdings

(

NVEE

), up 4.7%,

Magal Security Systems

(

MAGS

), up 9.9%,

UniTek Global Services

(

UNTK

), up 7.5% and

MGT Capital Investments

(

MGT

), up 3.1%.

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

Magal Security Systems

(

MAGS

) is one of the companies that pushed the Diversified Services industry higher today. Magal Security Systems was up $0.37 (9.9%) to $4.11 on heavy volume. Throughout the day, 105,310 shares of Magal Security Systems exchanged hands as compared to its average daily volume of 7,400 shares. The stock ranged in a price between $3.70-$4.29 after having opened the day at $3.70 as compared to the previous trading day's close of $3.74.

Magal Security Systems Ltd. develops, manufactures, and sells safety, security, site management, and intelligence gathering and compilation solutions and products worldwide. It operates through: Perimeter Products, Turnkey Projects, and Cyber segments. Magal Security Systems has a market cap of $60.4 million and is part of the financial sector. Shares are up 5.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Magal Security Systems 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 Magal Security Systems as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on MAGS go as follows:

  • MAGS's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MAGS has a quick ratio of 2.35, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.
  • MAGS, with its decline in revenue, underperformed when compared the industry average of 8.6%. Since the same quarter one year prior, revenues slightly dropped by 7.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, MAGAL SECURITY SYSTEMS's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for MAGAL SECURITY SYSTEMS is currently lower than what is desirable, coming in at 32.68%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.78% is significantly below that of the industry average.

You can view the full analysis from the report here:

Magal Security Systems 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,

NV5 Holdings

(

NVEE

) was up $0.44 (4.7%) to $9.89 on light volume. Throughout the day, 200 shares of NV5 Holdings exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $9.50-$9.89 after having opened the day at $9.50 as compared to the previous trading day's close of $9.45.

NV5 Holdings has a market cap of $57.1 million and is part of the financial sector. Shares are up 16.1% year-to-date as of the close of trading on Tuesday.

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

Highlights from TheStreet Ratings analysis on NVEE go as follows:

You can view the full analysis from the report here:

NV5 Holdings 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 $0.10 (2.7%) to $3.85 on light volume. Throughout the day, 1,758 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 $3.66-$3.85 after having opened the day at $3.78 as compared to the previous trading day's close of $3.75.

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 $8.8 million and is part of the financial sector. Shares are down 13.4% year-to-date as of the close of trading on Tuesday. 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 31.82%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1700.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.

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.