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.

All three major indices traded up today with the

Dow Jones Industrial Average

(

^DJI

) trading up 209 points (1.2%) at 17,010 as of Friday, Oct. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,086 issues advancing vs. 991 declining with 139 unchanged.

The Diversified Services industry as a whole closed the day up 1.0% versus the S&P 500, which was up 1.1%. Top gainers within the Diversified Services industry included

General Employment

(

JOB

), up 10.1%,

VirtualScopics

(

VSCP

), up 2.9%,

DLH Holdings

(

DLHC

), up 2.1%,

PDI

(

PDII

), up 2.6% and

Management Network Group

(

TMNG

), up 8.4%.

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

Management Network Group

(

TMNG

TST Recommends

) is one of the companies that pushed the Diversified Services industry higher today. Management Network Group was up $0.29 (8.4%) to $3.75 on light volume. Throughout the day, 4,596 shares of Management Network Group exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in a price between $3.49-$3.75 after having opened the day at $3.49 as compared to the previous trading day's close of $3.46.

Management Network Group has a market cap of $37.5 million and is part of the services sector. Shares are up 25.8% year-to-date as of the close of trading on Thursday.

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,

PDI

(

PDII

) was up $0.06 (2.6%) to $2.32 on light volume. Throughout the day, 12,995 shares of PDI exchanged hands as compared to its average daily volume of 20,900 shares. The stock ranged in a price between $2.31-$2.39 after having opened the day at $2.36 as compared to the previous trading day's close of $2.26.

PDI, Inc. provides outsourced commercial services to pharmaceutical, biotechnology, and healthcare companies in the United States. PDI has a market cap of $37.0 million and is part of the services sector. Shares are down 53.0% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates PDI a buy, no analysts rate it a sell, and 1 rates 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 PDI as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on PDII 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 Health Care Providers & Services industry. The net income has significantly decreased by 200.7% when compared to the same quarter one year ago, falling from -$0.88 million to -$2.66 million.
  • The gross profit margin for PDI INC is rather low; currently it is at 16.38%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.41% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$1.83 million or 1.61% 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.58%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 183.33% 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.
  • PDI INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PDI INC continued to lose money by earning -$0.31 versus -$1.75 in the prior year. For the next year, the market is expecting a contraction of 111.3% in earnings (-$0.66 versus -$0.31).

You can view the full analysis from the report here:

PDI 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.

VirtualScopics

(

VSCP

) was another company that pushed the Diversified Services industry higher today. VirtualScopics was up $0.13 (2.9%) to $4.58 on average volume. Throughout the day, 2,957 shares of VirtualScopics exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in a price between $4.35-$4.58 after having opened the day at $4.37 as compared to the previous trading day's close of $4.45.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $13.8 million and is part of the services sector. Shares are up 28.6% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates VirtualScopics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on VSCP 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 646.3% when compared to the same quarter one year ago, falling from $0.13 million to -$0.73 million.
  • 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 Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.16 million or 716.90% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • This stock's share value has moved by only 6.11% over the past year. 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.
  • The revenue fell significantly faster than the industry average of 22.2%. Since the same quarter one year prior, revenues fell by 28.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here:

VirtualScopics 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.