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 305 points (1.8%) at 17,666 as of Tuesday, Feb. 3, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,499 issues advancing vs. 614 declining with 98 unchanged.

The Services sector as a whole closed the day up 1.9% versus the S&P 500, which was up 1.4%. Top gainers within the Services sector included

Discovery Communications

(

DISCB

), up 3.3%,

QKL Stores

(

QKLS

), up 2.4%,

Acorn International

(

ATV

), up 4.1%,

Haverty Furniture Companies

(

HVT.A

), up 2.6% and

Taitron Components

(

TAIT

), up 3.0%.

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

Acorn International

(

ATV

) is one of the companies that pushed the Services sector higher today. Acorn International was up $0.04 (4.1%) to $0.96 on average volume. Throughout the day, 8,725 shares of Acorn International exchanged hands as compared to its average daily volume of 7,000 shares. The stock ranged in a price between $0.85-$0.96 after having opened the day at $0.85 as compared to the previous trading day's close of $0.92.

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells a portfolio of proprietary-branded products; and third parties products. The company operates two sales platforms, including integrated direct sales and a nationwide distribution network. Acorn International has a market cap of $25.7 million and is part of the consumer durables industry. Shares are down 45.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Acorn 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 Acorn International as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ATV go as follows:

  • 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 Internet & Catalog Retail industry and the overall market, ACORN INTERNATIONAL INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • ATV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 26.67%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last 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.
  • ACORN INTERNATIONAL INC -ADR has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ACORN INTERNATIONAL INC -ADR reported poor results of -$1.45 versus -$0.59 in the prior year.
  • The revenue fell significantly faster than the industry average of 3.3%. Since the same quarter one year prior, revenues fell by 44.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 39.76% is the gross profit margin for ACORN INTERNATIONAL INC -ADR which we consider to be strong. Regardless of ATV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATV's net profit margin of -28.10% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Acorn 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,

QKL Stores

(

QKLS

) was up $0.05 (2.4%) to $2.12 on light volume. Throughout the day, 1,250 shares of QKL Stores exchanged hands as compared to its average daily volume of 2,400 shares. The stock ranged in a price between $1.63-$2.18 after having opened the day at $1.80 as compared to the previous trading day's close of $2.07.

QKL Stores Inc., together with its subsidiaries, operates a supermarket chain in northeastern China and Inner Mongolia. QKL Stores has a market cap of $3.2 million and is part of the consumer durables industry. Shares are up 6.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate QKL Stores 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 QKL Stores as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on QKLS 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 Food & Staples Retailing industry. The net income has significantly decreased by 223.9% when compared to the same quarter one year ago, falling from -$1.69 million to -$5.48 million.
  • The debt-to-equity ratio of 1.45 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, QKLS has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Food & Staples Retailing industry and the overall market, QKL STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QKL STORES INC is rather low; currently it is at 16.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.96% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$3.29 million or 3.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

QKL Stores 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.

Discovery Communications

(

DISCB

) was another company that pushed the Services sector higher today. Discovery Communications was up $0.98 (3.3%) to $31.00 on heavy volume. Throughout the day, 250 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in a price between $30.90-$31.00 after having opened the day at $30.90 as compared to the previous trading day's close of $30.02.

Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Discovery Communications has a market cap of $183.7 million and is part of the consumer durables industry. Shares are down 24.1% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Discovery Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Discovery Communications

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on DISCB go as follows:

  • DISCB's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISCOVERY COMMUNICATIONS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • DISCOVERY COMMUNICATIONS INC has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DISCOVERY COMMUNICATIONS INC reported lower earnings of $2.05 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($5.03 versus $2.05).
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 89.99%. Regardless of DISCB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DISCB's net profit margin of 17.85% compares favorably to the industry average.

You can view the full analysis from the report here:

Discovery Communications 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.