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.

The Diversified Services industry as a whole closed the day up 1.4% versus the S&P 500, which was up 0.6%. Laggards within the Diversified Services industry included

Kelly Services

(

KELYB

), down 15.4%,

Universal Security Instruments

(

UUU

), down 3.2%,

Spar Group

(

SGRP

), down 2.4%,

DLH Holdings

(

DLHC

), down 7.5% and

UniTek Global Services

(

UNTK

), down 2.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

UniTek Global Services

(

UNTK

) is one of the companies that pushed the Diversified Services industry lower today. UniTek Global Services was down $0.02 (2.8%) to $0.69 on heavy volume. Throughout the day, 87,748 shares of UniTek Global Services exchanged hands as compared to its average daily volume of 42,500 shares. The stock ranged in price between $0.60-$0.79 after having opened the day at $0.79 as compared to the previous trading day's close of $0.71.

UniTek Global Services, Inc. provides technical services to the wireless telecommunications, public safety, satellite television, and broadband cable industries in the United States and Canada. The company operates in two segments, Fulfillment, and Engineering and Construction. UniTek Global Services has a market cap of $13.7 million and is part of the services sector. Shares are down 57.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate UniTek Global Services 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

UniTek Global Services

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating 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 UNTK 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 Construction & Engineering industry. The net income has significantly decreased by 156.1% when compared to the same quarter one year ago, falling from -$7.66 million to -$19.63 million.
  • The gross profit margin for UNITEK GLOBAL SERVICES INC is currently extremely low, coming in at 14.98%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -22.15% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.32 million or 135.15% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much 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 60.95%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 175.67% 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.
  • UNITEK GLOBAL SERVICES 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, UNITEK GLOBAL SERVICES INC reported poor results of -$2.65 versus -$2.28 in the prior year. This year, the market expects an improvement in earnings (-$0.99 versus -$2.65).

You can view the full analysis from the report here:

UniTek Global Services 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,

Spar Group

(

SGRP

) was down $0.04 (2.4%) to $1.60 on light volume. Throughout the day, 100 shares of Spar Group exchanged hands as compared to its average daily volume of 9,000 shares. The stock ranged in price between $1.60-$1.60 after having opened the day at $1.60 as compared to the previous trading day's close of $1.64.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $33.9 million and is part of the services sector. Shares are down 17.2% year-to-date as of the close of trading on Friday.

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

Spar Group

as a

buy

. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 134.1% when compared to the same quarter one year prior, rising from $1.33 million to $3.11 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SGRP has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 in the prior year. For the next year, the market is expecting a contraction of 80.0% in earnings ($0.03 versus $0.15).

You can view the full analysis from the report here:

Spar 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.

Universal Security Instruments

(

UUU

) was another company that pushed the Diversified Services industry lower today. Universal Security Instruments was down $0.14 (3.2%) to $4.27 on average volume. Throughout the day, 3,280 shares of Universal Security Instruments exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $4.27-$4.43 after having opened the day at $4.30 as compared to the previous trading day's close of $4.41.

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 $10.1 million and is part of the services sector. Shares are up 1.9% year-to-date as of the close of trading on Friday.

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.

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 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.
  • The share price of UNIVERSAL SECURITY INSTRUMNT has not done very well: it is down 12.66% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

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.