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 39 points (0.2%) at 17,554 as of Wednesday, Jan. 21, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,967 issues advancing vs. 1,121 declining with 130 unchanged.

The Diversified Services industry as a whole closed the day down 0.3% versus the S&P 500, which was up 0.5%. Top gainers within the Diversified Services industry included

SmartPros

(

SPRO

), up 4.0%,

Onvia

(

ONVI

), up 2.4%,

RLJ Entertainment

(

RLJE

), up 9.1%,

Cambium Learning Group

(

ABCD

), up 9.1% and

Taomee Holdings

(

TAOM

), up 1.6%.

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

Taomee Holdings

(

TAOM

) is one of the companies that pushed the Diversified Services industry higher today. Taomee Holdings was up $0.06 (1.6%) to $3.77 on light volume. Throughout the day, 6,759 shares of Taomee Holdings exchanged hands as compared to its average daily volume of 15,100 shares. The stock ranged in a price between $3.60-$3.77 after having opened the day at $3.60 as compared to the previous trading day's close of $3.71.

Taomee Holdings Limited operates as a children's entertainment and media company in the People's Republic of China. It operates through two segments, Online Business and Offline Business. Taomee Holdings has a market cap of $130.4 million and is part of the services sector. Shares are up 7.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Taomee Holdings 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 Taomee Holdings 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, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on TAOM go as follows:

  • TAOM 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 4.18, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for TAOMEE HOLDINGS LTD -ADR is currently very high, coming in at 74.54%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TAOM's net profit margin of 8.37% significantly trails the industry average.
  • The revenue fell significantly faster than the industry average of 26.6%. Since the same quarter one year prior, revenues fell by 15.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TAOMEE HOLDINGS LTD -ADR's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, TAOMEE HOLDINGS LTD -ADR reported lower earnings of $0.15 versus $0.23 in the prior year. For the next year, the market is expecting a contraction of 133.3% in earnings (-$0.05 versus $0.15).
  • 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 Software industry. The net income has significantly decreased by 51.5% when compared to the same quarter one year ago, falling from $2.40 million to $1.17 million.

You can view the full analysis from the report here:

Taomee 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.

At the close,

Cambium Learning Group

(

ABCD

) was up $0.19 (9.1%) to $2.29 on heavy volume. Throughout the day, 173,302 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 16,900 shares. The stock ranged in a price between $2.11-$2.41 after having opened the day at $2.11 as compared to the previous trading day's close of $2.10.

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 $80.9 million and is part of the services sector. Shares are up 26.5% year-to-date as of the close of trading on Tuesday. 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

. The area that we feel has been the company's primary weakness has been its generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ABCD go as follows:

  • This stock's share value has moved by only 13.47% 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.
  • ABCD, with its decline in revenue, slightly underperformed the industry average of 5.1%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. 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 73.16%. 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 2.41% trails the industry average.
  • Net operating cash flow has significantly increased by 59.82% to $19.64 million when compared to the same quarter last year. In addition, CAMBIUM LEARNING GROUP INC has also vastly surpassed the industry average cash flow growth rate of -5.58%.
  • CAMBIUM LEARNING GROUP INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, CAMBIUM LEARNING GROUP INC continued to lose money by earning -$0.31 versus -$2.72 in the prior year.

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.

RLJ Entertainment

(

RLJE

) was another company that pushed the Diversified Services industry higher today. RLJ Entertainment was up $0.18 (9.1%) to $2.17 on light volume. Throughout the day, 1,410 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 7,800 shares. The stock ranged in a price between $1.99-$2.17 after having opened the day at $1.99 as compared to the previous trading day's close of $1.99.

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 $26.7 million and is part of the services sector. Shares are unchanged year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate RLJ Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates RLJ Entertainment as a

sell

. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RLJE go as follows:

  • Although RLJE's debt-to-equity ratio of 2.15 is very high, it is currently less than that of the industry average.
  • 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. 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.
  • The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 24.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.00% is significantly below that of the industry average.
  • RLJ ENTERTAINMENT INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.
  • 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 61.25%, which is also worse than the performance of the S&P 500 Index. 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:

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.

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.