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.

The Services sector as a whole closed the day down 0.9% versus the S&P 500, which was down 1.3%. Laggards within the Services sector included

Starz

(

STRZB

), down 3.4%,

Discovery Communications

(

DISCB

), down 3.8%,

Spar Group

(

SGRP

), down 8.2%,

Radio One

(

ROIA

), down 10.6% and

Alon Blue Square Israel

(

BSI

), down 4.1%.

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 $0.31 (10.6%) to $2.61 on light volume. Throughout the day, 416 shares of Radio One exchanged hands as compared to its average daily volume of 4,200 shares. The stock ranged in price between $2.60-$2.61 after having opened the day at $2.60 as compared to the previous trading day's close of $2.92.

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 $6.2 million and is part of the media industry. Shares are up 67.2% year-to-date as of the close of trading on Thursday.

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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 generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • The debt-to-equity ratio is very high at 43.41 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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.
  • 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 45.98%, 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.
  • RADIO ONE INC has improved earnings per share by 20.0% in the most recent quarter compared to the same quarter a year ago. 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, RADIO ONE INC reported poor results of -$1.32 versus -$1.30 in the prior year.
  • ROIA, with its decline in revenue, slightly underperformed the industry average of 6.5%. Since the same quarter one year prior, revenues slightly dropped by 1.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

You can view the full analysis from the report here:

Radio One Ratings Report

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At the close,

Spar Group

(

SGRP

) was down $0.13 (8.2%) to $1.46 on light volume. Throughout the day, 1,540 shares of Spar Group exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $1.46-$1.58 after having opened the day at $1.58 as compared to the previous trading day's close of $1.59.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $32.7 million and is part of the media industry. Shares are up 13.6% 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 6.5%. 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 has underperformed the S&P 500 Index, declining 23.65% from its price level of one year ago. 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.

Discovery Communications

(

DISCB

) was another company that pushed the Services sector lower today. Discovery Communications was down $1.31 (3.8%) to $33.59 on heavy volume. Throughout the day, 1,094 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in price between $33.09-$33.59 after having opened the day at $33.16 as compared to the previous trading day's close of $34.90.

Discovery Communications, Inc. operates as a media company. The company operates through U.S. Networks; International Networks; and Education and Other segments. Discovery Communications has a market cap of $228.3 million and is part of the media industry. Shares are down 5.7% year-to-date as of the close of trading on Thursday. 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, reasonable valuation levels, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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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 6.5%. Since the same quarter one year prior, revenues slightly increased by 9.0%. 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.
  • Net operating cash flow has increased to $425.00 million or 19.71% when compared to the same quarter last year. Despite an increase in cash flow, DISCOVERY COMMUNICATIONS INC's cash flow growth rate is still lower than the industry average growth rate of 47.54%.
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 88.25%. 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 14.91% compares favorably to the industry average.
  • Even though the current debt-to-equity ratio is 1.28, it is still below the industry average, suggesting that this level of debt is acceptable within the Media industry. Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.75 is weak.

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.