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The Services sector as a whole closed the day down 0.7% versus the S&P 500, which was up 0.6%. Laggards within the Services sector included Sport Chalet ( SPCHB), down 6.8%, Discovery Communications ( DISCB), down 5.8%, Sino-Global Shipping America ( SINO), down 2.9%, VirtualScopics ( VSCP), down 3.7% and Radio One ( ROIA), down 6.0%.

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

Sino-Global Shipping America ( SINO) is one of the companies that pushed the Services sector lower today. Sino-Global Shipping America was down $0.07 (2.9%) to $2.33 on light volume. Throughout the day, 2,949 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 6,000 shares. The stock ranged in price between $2.26-$2.44 after having opened the day at $2.41 as compared to the previous trading day's close of $2.40.

Sino-Global Shipping America, Ltd. provides shipping agency services for ships coming to and departing from Chinese ports. Sino-Global Shipping America has a market cap of $11.9 million and is part of the diversified services industry. Shares are down 4.0% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Sino-Global Shipping America a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates Sino-Global Shipping America as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on SINO go as follows:

  • The gross profit margin for SINO-GLOBAL SHIPPING AMERICA is currently lower than what is desirable, coming in at 31.47%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 20.22% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Transportation Infrastructure industry and the overall market, SINO-GLOBAL SHIPPING AMERICA's return on equity significantly trails that of both the industry average and the S&P 500.
  • SINO, with its very weak revenue results, has greatly underperformed against the industry average of 7.9%. Since the same quarter one year prior, revenues plummeted by 61.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • SINO-GLOBAL SHIPPING AMERICA reported significant earnings per share improvement 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 year. During the past fiscal year, SINO-GLOBAL SHIPPING AMERICA continued to lose money by earning -$0.39 versus -$0.61 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Transportation Infrastructure industry. The net income increased by 271.2% when compared to the same quarter one year prior, rising from -$0.29 million to $0.50 million.

You can view the full analysis from the report here: Sino-Global Shipping America Ratings Report

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At the close, Discovery Communications ( DISCB) was down $4.59 (5.8%) to $73.81 on average volume. Throughout the day, 120 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in price between $73.81-$73.81 after having opened the day at $73.81 as compared to the previous trading day's close of $78.40.

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 $513.1 million and is part of the diversified services industry. Shares are down 12.6% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Discovery Communications a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, notable return on equity, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from TheStreet Ratings analysis on DISCB go as follows:

  • The revenue growth came in higher than the industry average of 5.1%. Since the same quarter one year prior, revenues rose by 28.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • DISCOVERY COMMUNICATIONS INC has improved earnings per share by 32.8% 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 year. 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 ($11.10 versus $2.97).
  • 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.
  • Net operating cash flow has slightly increased to $355.00 million or 8.23% when compared to the same quarter last year. In addition, DISCOVERY COMMUNICATIONS INC has also modestly surpassed the industry average cash flow growth rate of 3.44%.
  • The net income growth from the same quarter one year ago has exceeded that of the Media industry average, but is less than that of the S&P 500. The net income increased by 29.0% when compared to the same quarter one year prior, rising from $224.00 million to $289.00 million.

You can view the full analysis from the report here: Discovery Communications Ratings Report

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Sport Chalet ( SPCHB) was another company that pushed the Services sector lower today. Sport Chalet was down $0.08 (6.8%) to $1.10 on heavy volume. Throughout the day, 2,900 shares of Sport Chalet exchanged hands as compared to its average daily volume of 1,700 shares. The stock ranged in price between $1.10-$1.20 after having opened the day at $1.18 as compared to the previous trading day's close of $1.18.

Sport Chalet, Inc. operates as a specialty sporting goods retailer in the United States. Sport Chalet has a market cap of $2.1 million and is part of the diversified services industry. Shares are down 7.5% year-to-date as of the close of trading on Tuesday.

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.

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Highlights from TheStreet Ratings analysis on SPCHB 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.
  • SPCHB has underperformed the S&P 500 Index, declining 11.45% from its price level of one year ago. 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.
  • The gross profit margin for SPORT CHALET INC is currently lower than what is desirable, coming in at 29.15%. Regardless of SPCHB'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

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