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 Services sector as a whole closed the day up 1.0% versus the S&P 500, which was up 0.6%. Laggards within the Services sector included

Kelly Services

(

KELYB

), down 15.4%,

Sport Chalet

(

SPCHA

), down 2.9%,

Rada Electronics Industries

(

RADA

), down 4.1%,

Universal Security Instruments

(

UUU

), down 3.2% and

Acorn International

(

ATV

), down 9.4%.

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

Acorn International

(

ATV

) is one of the companies that pushed the Services sector lower today. Acorn International was down $0.17 (9.4%) to $1.63 on average volume. Throughout the day, 11,459 shares of Acorn International exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $1.57-$1.79 after having opened the day at $1.79 as compared to the previous trading day's close of $1.80.

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 $49.6 million and is part of the retail industry. Shares are up 16.0% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates

Acorn International

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ATV go as follows:

  • ACORN INTERNATIONAL INC -ADR 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 two years. During the past fiscal year, ACORN INTERNATIONAL INC -ADR reported poor results of -$1.45 versus -$0.59 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 Internet & Catalog Retail industry. The net income has significantly decreased by 47.0% when compared to the same quarter one year ago, falling from -$9.38 million to -$13.79 million.
  • 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.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.32%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 70.00% 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.
  • The revenue fell significantly faster than the industry average of 4.3%. Since the same quarter one year prior, revenues fell by 39.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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,

Universal Security Instruments

(

UUU

) 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 retail industry. Shares are up 1.9% year-to-date as of the close of trading on Friday.

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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.

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.

Sport Chalet

(

SPCHA

) was another company that pushed the Services sector lower today. Sport Chalet was down $0.03 (2.9%) to $1.02 on light volume. Throughout the day, 175 shares of Sport Chalet exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in price between $1.02-$1.02 after having opened the day at $1.02 as compared to the previous trading day's close of $1.05.

Sport Chalet, Inc. operates as a specialty sporting goods retailer in the United States. Sport Chalet has a market cap of $13.0 million and is part of the retail industry. Shares are down 3.7% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates

Sport Chalet

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, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

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 SPCHA go as follows:

  • The debt-to-equity ratio is very high at 4.18 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with this, the company manages to maintain a quick ratio of 0.09, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Specialty Retail industry and the overall market, SPORT CHALET INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $6.05 million or 48.75% 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.
  • SPCHA'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 44.74%, 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.
  • The gross profit margin for SPORT CHALET INC is currently lower than what is desirable, coming in at 29.15%. Regardless of SPCHA's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.52% trails the industry average.

You can view the full analysis from the report here:

Sport Chalet 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.