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 1.5% versus the S&P 500, which was down 1.3%. Laggards within the Services sector included

Discovery Communications

(

DISCB

), down 4.3%,

QKL Stores

(

QKLS

), down 15.8%,

Radio One

(

ROIA

), down 7.5%,

Acorn International

(

ATV

), down 7.9% and

Spar Group

(

SGRP

), down 3.4%.

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

Radio One

(

ROIA

) is one of the companies that pushed the Services sector lower today. Radio One was down $0.14 (7.5%) to $1.74 on heavy volume. Throughout the day, 10,138 shares of Radio One exchanged hands as compared to its average daily volume of 4,100 shares. The stock ranged in price between $1.73-$1.84 after having opened the day at $1.80 as compared to the previous trading day's close of $1.88.

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Internet, and Cable Television. Radio One has a market cap of $4.1 million and is part of the consumer durables industry. Shares are up 14.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

Radio One

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • 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 Media industry and the overall market, RADIO ONE INC'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 $5.14 million or 70.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The debt-to-equity ratio is very high at 25.19 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.66, which shows the ability to cover short-term cash needs.
  • ROIA'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 63.01%, 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.
  • 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 Media industry average. The net income increased by 0.0% when compared to the same quarter one year prior, going from -$13.22 million to -$13.22 million.

You can view the full analysis from the report here:

Radio One Ratings Report

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At the close,

QKL Stores

(

QKLS

) was down $0.40 (15.8%) to $2.14 on light volume. Throughout the day, 733 shares of QKL Stores exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in price between $2.05-$2.24 after having opened the day at $2.24 as compared to the previous trading day's close of $2.54.

QKL Stores Inc., together with its subsidiaries, operates a supermarket chain in northeastern China and Inner Mongolia. QKL Stores has a market cap of $3.5 million and is part of the consumer durables industry. Shares are up 30.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates

QKL Stores

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on QKLS 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 Food & Staples Retailing industry. The net income has significantly decreased by 223.9% when compared to the same quarter one year ago, falling from -$1.69 million to -$5.48 million.
  • The debt-to-equity ratio of 1.45 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, QKLS has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Food & Staples Retailing industry and the overall market, QKL STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QKL STORES INC is rather low; currently it is at 16.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.96% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$3.29 million or 3.71% 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:

QKL Stores 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 $1.40 (4.3%) to $30.90 on heavy volume. Throughout the day, 1,000 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in price between $30.90-$30.90 after having opened the day at $30.90 as compared to the previous trading day's close of $32.30.

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 $211.3 million and is part of the consumer durables industry. Shares are down 12.8% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Discovery Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

TheStreet Ratings rates

Discovery Communications

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, reasonable valuation levels, impressive record of earnings per share growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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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 8.4%. Since the same quarter one year prior, revenues rose by 14.0%. 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.
  • DISCOVERY COMMUNICATIONS INC has improved earnings per share by 17.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, DISCOVERY COMMUNICATIONS INC reported lower earnings of $2.05 versus $2.52 in the prior year. This year, the market expects an improvement in earnings ($5.03 versus $2.05).
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 89.99%. Regardless of DISCB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DISCB's net profit margin of 17.85% compares favorably to the industry average.

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.