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 0.3%. Laggards within the Services sector included

QKL Stores

(

QKLS

), down 16.7%,

Spar Group

(

SGRP

), down 6.0%,

Alon Blue Square Israel

(

BSI

), down 1.5%,

Dover Saddlery

(

DOVR

), down 5.7% and

John Wiley & Sons

(

JW.B

), down 1.7%.

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

Dover Saddlery

(

DOVR

) is one of the companies that pushed the Services sector lower today. Dover Saddlery was down $0.27 (5.7%) to $4.51 on heavy volume. Throughout the day, 4,715 shares of Dover Saddlery exchanged hands as compared to its average daily volume of 2,300 shares. The stock ranged in price between $4.50-$4.70 after having opened the day at $4.70 as compared to the previous trading day's close of $4.78.

Dover Saddlery, Inc. operates as a specialty retailer and omni-channel marketer of equestrian products in the United States. The company offers a selection of products required to own, ride, train, and compete with a horse. Dover Saddlery has a market cap of $24.3 million and is part of the diversified services industry. Shares are down 7.2% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Dover Saddlery

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on DOVR go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 40.34% is the gross profit margin for DOVER SADDLERY 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 0.85% trails the industry average.
  • DOVER SADDLERY INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DOVER SADDLERY INC reported lower earnings of $0.27 versus $0.31 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 Specialty Retail industry. The net income has significantly decreased by 52.6% when compared to the same quarter one year ago, falling from $0.44 million to $0.21 million.

You can view the full analysis from the report here:

Dover Saddlery Ratings Report

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At the close,

Spar Group

(

SGRP

) was down $0.09 (6.0%) to $1.41 on light volume. Throughout the day, 1,100 shares of Spar Group exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in price between $1.41-$1.43 after having opened the day at $1.43 as compared to the previous trading day's close of $1.50.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $30.2 million and is part of the diversified services industry. Shares are up 7.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates

Spar Group

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • SGRP's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • SGRP's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SGRP has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP INC reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for 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.
  • SGRP'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 27.37%, which is also worse than the performance of the S&P 500 Index. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for SPAR GROUP INC is rather low; currently it is at 23.56%. Regardless of SGRP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SGRP's net profit margin of 1.23% is significantly lower than the industry average.

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.

QKL Stores

(

QKLS

) was another company that pushed the Services sector lower today. QKL Stores was down $0.51 (16.7%) to $2.55 on heavy volume. Throughout the day, 189,815 shares of QKL Stores exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in price between $2.53-$4.19 after having opened the day at $3.14 as compared to the previous trading day's close of $3.06.

QKL Stores Inc., together with its subsidiaries, operates a supermarket chain in northeastern China and Inner Mongolia. QKL Stores has a market cap of $2.6 million and is part of the diversified services industry. Shares are down 12.6% year-to-date as of the close of trading on Thursday.

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.

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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.