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 The three major indices are trading lower today with the

Dow Jones Industrial Average

(

^DJI

) trading down 3.66 points (0.0%) at 16,801 as of Thursday, Oct. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,659 issues advancing vs. 1,437 declining with 130 unchanged.

The Diversified Services industry as a whole closed the day up 0.7% versus the S&P 500, which was unchanged. Top gainers within the Diversified Services industry included

Cambium Learning Group

(

ABCD

), up 2.5%,

RLJ Entertainment

(

RLJE

), up 2.6%,

EnviroStar

(

EVI

), up 4.4%,

Mastech Holdings

(

MHH

), up 4.5% and

ATA

(

ATAI

), up 2.5%.

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

ATA

(

ATAI

) is one of the companies that pushed the Diversified Services industry higher today. ATA was up $0.11 (2.5%) to $4.45 on light volume. Throughout the day, 5,186 shares of ATA exchanged hands as compared to its average daily volume of 17,100 shares. The stock ranged in a price between $4.25-$4.50 after having opened the day at $4.34 as compared to the previous trading day's close of $4.34.

ATA Inc. provides computer-based testing services in the People's Republic of China. ATA has a market cap of $103.2 million and is part of the services sector. Shares are up 11.7% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate ATA 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 ATA 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 expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on ATAI go as follows:

  • ATAI 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 2.83, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for ATA INC -ADS is rather high; currently it is at 56.34%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, ATAI's net profit margin of 5.45% significantly trails the industry average.
  • ATA INC -ADS 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 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, ATA INC -ADS increased its bottom line by earning $0.19 versus $0.16 in the prior year.
  • 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 Diversified Consumer Services industry. The net income has significantly decreased by 51.6% when compared to the same quarter one year ago, falling from $1.53 million to $0.74 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Diversified Consumer Services industry and the overall market, ATA INC -ADS's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here:

ATA 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,

RLJ Entertainment

(

RLJE

) was up $0.10 (2.6%) to $3.93 on average volume. Throughout the day, 11,929 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 12,700 shares. The stock ranged in a price between $3.53-$4.00 after having opened the day at $3.94 as compared to the previous trading day's close of $3.83.

RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures. It operates through three segments: Intellectual Property Licensing, Wholesale, and Direct-to-Consumer. RLJ Entertainment has a market cap of $51.3 million and is part of the services sector. Shares are down 19.2% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate RLJ Entertainment 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 RLJ Entertainment as a

sell

. The company's weaknesses can be seen in multiple areas, such as its 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 RLJE 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 Media industry and the overall market, RLJ ENTERTAINMENT 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 $0.17 million or 97.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for RLJ ENTERTAINMENT INC is currently lower than what is desirable, coming in at 30.90%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, RLJE's net profit margin of -7.10% significantly underperformed when compared to the industry average.
  • RLJE'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 33.59%, 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.
  • RLJ ENTERTAINMENT INC reported significant earnings per share improvement 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, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.

You can view the full analysis from the report here:

RLJ Entertainment 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.

Cambium Learning Group

(

ABCD

) was another company that pushed the Diversified Services industry higher today. Cambium Learning Group was up $0.04 (2.5%) to $1.61 on light volume. Throughout the day, 4,456 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 26,600 shares. The stock ranged in a price between $1.56-$1.68 after having opened the day at $1.68 as compared to the previous trading day's close of $1.57.

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 $68.3 million and is part of the services sector. Shares are down 8.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Cambium Learning Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cambium Learning Group as a

sell

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

Highlights from TheStreet Ratings analysis on ABCD 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 Diversified Consumer Services industry. The net income has significantly decreased by 398.8% when compared to the same quarter one year ago, falling from $0.43 million to -$1.29 million.
  • Net operating cash flow has significantly decreased to $0.37 million or 98.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, ABCD has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • CAMBIUM LEARNING GROUP 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 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, CAMBIUM LEARNING GROUP INC continued to lose money by earning -$0.31 versus -$2.72 in the prior year.
  • ABCD, with its decline in revenue, underperformed when compared the industry average of 6.8%. Since the same quarter one year prior, revenues fell by 15.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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.

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.