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 0.7% versus the S&P 500, which was up 0.2%. Laggards within the Diversified Services industry included

General Employment

(

JOB

), down 1.7%,

Bioanalytical Systems

(

BASI

), down 2.6%,

EnviroStar

(

EVI

), down 2.0%,

Cambium Learning Group

(

ABCD

), down 2.0% and

SmartPros

(

SPRO

), down 3.7%.

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

Korn/Ferry International

(

KFY

) is one of the companies that pushed the Diversified Services industry lower today. Korn/Ferry International was down $1.26 (4.1%) to $29.22 on heavy volume. Throughout the day, 1,047,737 shares of Korn/Ferry International exchanged hands as compared to its average daily volume of 349,700 shares. The stock ranged in price between $28.42-$30.50 after having opened the day at $30.46 as compared to the previous trading day's close of $30.48.

Korn/Ferry International, together with its subsidiaries, provides talent management solutions that help clients to design strategies in building and attracting their talent. Korn/Ferry International has a market cap of $1.5 billion and is part of the services sector. Shares are up 16.7% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Korn/Ferry International a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates

Korn/Ferry International

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, attractive valuation levels and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on KFY go as follows:

  • KFY's revenue growth has slightly outpaced the industry average of 11.9%. Since the same quarter one year prior, revenues rose by 19.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • KFY 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. To add to this, KFY has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 115.00% and other important driving factors, this stock has surged by 77.11% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, KFY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 124.7% when compared to the same quarter one year prior, rising from $9.48 million to $21.30 million.

You can view the full analysis from the report here:

Korn/Ferry 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,

Cambium Learning Group

(

ABCD

) was down $0.04 (2.0%) to $2.01 on light volume. Throughout the day, 13,047 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 29,900 shares. The stock ranged in price between $2.00-$2.17 after having opened the day at $2.05 as compared to the previous trading day's close of $2.05.

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 $92.4 million and is part of the services sector. Shares are up 24.1% year-to-date as of the close of trading on Monday.

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

. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from TheStreet Ratings analysis on ABCD go as follows:

  • Net operating cash flow has declined marginally to -$16.65 million or 2.51% when compared to the same quarter last year. Despite a decrease in cash flow CAMBIUM LEARNING GROUP INC is still fairing well by exceeding its industry average cash flow growth rate of -18.00%.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Diversified Consumer Services industry average. The net income increased by 27.4% when compared to the same quarter one year prior, rising from -$9.08 million to -$6.59 million.
  • ABCD, with its decline in revenue, slightly underperformed the industry average of 1.5%. Since the same quarter one year prior, revenues slightly dropped by 1.1%. 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 71.01%. 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 -21.19% is in-line with the industry average.
  • This stock has increased by 56.53% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in ABCD do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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.

Bioanalytical Systems

(

BASI

) was another company that pushed the Diversified Services industry lower today. Bioanalytical Systems was down $0.07 (2.6%) to $2.61 on heavy volume. Throughout the day, 22,830 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 12,600 shares. The stock ranged in price between $2.60-$2.66 after having opened the day at $2.65 as compared to the previous trading day's close of $2.68.

Bioanalytical Systems, Inc. provides drug discovery and development services, and analytical instruments for pharmaceutical, biotechnology, academic, and government organizations in North America, the Pacific Rim, Europe, and internationally. Bioanalytical Systems has a market cap of $22.4 million and is part of the services sector. Shares are up 2.2% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates

Bioanalytical Systems

as a

sell

. The area that we feel has been the company's primary weakness has been its unimpressive growth in net income.

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 BASI go as follows:

  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Life Sciences Tools & Services industry average. The net income increased by 29.6% when compared to the same quarter one year prior, rising from -$0.31 million to -$0.22 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Life Sciences Tools & Services industry and the overall market on the basis of return on equity, BIOANALYTICAL SYSTEMS INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.30 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 40.75% is the gross profit margin for BIOANALYTICAL SYSTEMS INC which we consider to be strong. 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 -3.70% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 85.51% to -$0.03 million when compared to the same quarter last year. In addition, BIOANALYTICAL SYSTEMS INC has also vastly surpassed the industry average cash flow growth rate of -48.30%.

You can view the full analysis from the report here:

Bioanalytical Systems 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.