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 down 0.1% versus the S&P 500, which was down 0.1%. Laggards within the Services sector included

Discovery Communications

(

DISCB

), down 5.6%,

Crystal Rock Holdings

(

CRVP

), down 3.3%,

General Employment

(

JOB

), down 7.7%,

Peerless Systems

(

PRLS

), down 3.5% and

Perfumania Holdings

(

PERF

), down 2.4%.

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

Tractor Supply

(

TSCO

) is one of the companies that pushed the Services sector lower today. Tractor Supply was down $1.42 (2.3%) to $60.84 on heavy volume. Throughout the day, 2,101,924 shares of Tractor Supply exchanged hands as compared to its average daily volume of 953,000 shares. The stock ranged in price between $60.64-$62.63 after having opened the day at $62.44 as compared to the previous trading day's close of $62.26.

Tractor Supply Company operates retail farm and ranch stores in the United States. Tractor Supply has a market cap of $8.7 billion and is part of the specialty retail industry. Shares are down 19.8% year-to-date as of the close of trading on Wednesday. Currently there are 11 analysts who rate Tractor Supply a buy, no analysts rate it a sell, and 11 rate it a hold.

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TheStreet Ratings rates

Tractor Supply

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, notable return on equity, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from TheStreet Ratings analysis on TSCO go as follows:

  • The revenue growth came in higher than the industry average of 2.1%. Since the same quarter one year prior, revenues slightly increased by 9.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • TRACTOR SUPPLY CO has improved earnings per share by 12.9% 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. We feel that this trend should continue. During the past fiscal year, TRACTOR SUPPLY CO increased its bottom line by earning $2.33 versus $1.90 in the prior year. This year, the market expects an improvement in earnings ($2.62 versus $2.33).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Specialty Retail industry and the overall market, TRACTOR SUPPLY CO's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • Net operating cash flow has significantly increased by 60.04% to -$38.08 million when compared to the same quarter last year. In addition, TRACTOR SUPPLY CO has also vastly surpassed the industry average cash flow growth rate of -3.54%.
  • The net income growth from the same quarter one year ago has exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 10.9% when compared to the same quarter one year prior, going from $44.01 million to $48.81 million.

You can view the full analysis from the report here:

Tractor Supply Ratings Report

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At the close,

Peerless Systems

(

PRLS

) was down $0.13 (3.5%) to $3.59 on average volume. Throughout the day, 6,965 shares of Peerless Systems exchanged hands as compared to its average daily volume of 5,300 shares. The stock ranged in price between $3.59-$3.75 after having opened the day at $3.73 as compared to the previous trading day's close of $3.72.

Peerless Systems Corporation develops and licenses software-based digital imaging and networking systems and supporting electronic technologies to original equipment manufacturers (OEMs) of digital document products located primarily in the United States and Japan. Peerless Systems has a market cap of $9.8 million and is part of the specialty retail industry. Shares are up 2.2% year-to-date as of the close of trading on Wednesday.

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TheStreet Ratings rates

Peerless Systems

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, expanding profit margins and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on PRLS go as follows:

  • PRLS 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 49.98, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for PEERLESS SYSTEMS CORP is currently very high, coming in at 85.74%. Regardless of PRLS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PRLS's net profit margin of 9.32% is significantly lower than the industry average.
  • 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 Software industry and the overall market, PEERLESS SYSTEMS CORP'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 -$0.93 million or 374.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

Peerless 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.

Discovery Communications

(

DISCB

) was another company that pushed the Services sector lower today. Discovery Communications was down $4.34 (5.6%) to $72.66 on heavy volume. Throughout the day, 1,135 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in price between $72.66-$73.96 after having opened the day at $73.96 as compared to the previous trading day's close of $77.00.

Discovery Communications, Inc. operates as a media company worldwide. The company operates in three segments: U.S. Networks, International Networks, and Education. Discovery Communications has a market cap of $490.3 million and is part of the specialty retail industry. Shares are down 14.1% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Discovery Communications a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates

Discovery Communications

as a

buy

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from TheStreet Ratings analysis on DISCB go as follows:

  • DISCB's revenue growth has slightly outpaced the industry average of 14.6%. Since the same quarter one year prior, revenues rose by 22.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISCOVERY COMMUNICATIONS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 90.64%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.30% is above that of the industry average.
  • Net operating cash flow has significantly increased by 83.96% to $241.00 million when compared to the same quarter last year. In addition, DISCOVERY COMMUNICATIONS INC has also vastly surpassed the industry average cash flow growth rate of 5.61%.
  • DISCOVERY COMMUNICATIONS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, DISCOVERY COMMUNICATIONS INC increased its bottom line by earning $2.97 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($11.02 versus $2.97).

You can view the full analysis from the report here:

Discovery Communications 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.