3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day down 0.8% versus the S&P 500, which was up 0.1%. Laggards within the Diversified Services industry included UniTek Global Services ( UNTK), down 5.7%, Lime Energy ( LIME), down 1.8%, DLH Holdings ( DLHC), down 4.3%, National American University Holdings ( NAUH), down 2.1% and PDI ( PDII), down 2.5%.

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

National American University Holdings ( NAUH) is one of the companies that pushed the Diversified Services industry lower today. National American University Holdings was down $0.07 (2.1%) to $3.41 on average volume. Throughout the day, 16,493 shares of National American University Holdings exchanged hands as compared to its average daily volume of 13,200 shares. The stock ranged in price between $3.40-$3.44 after having opened the day at $3.42 as compared to the previous trading day's close of $3.48.

National American University Holdings, Inc. engages in the ownership and operation of National American University (NAU) that provides postsecondary education services primarily for working adults and other non-traditional students in the United States. National American University Holdings has a market cap of $86.6 million and is part of the services sector. Shares are down 0.6% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate National American University Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates National American University Holdings 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 deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on NAUH go as follows:

  • NAUH's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.72, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for NATIONAL AMERN UNIV HLDG INC is currently very high, coming in at 78.40%. 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 3.52% trails the industry average.
  • NAUH, with its decline in revenue, slightly underperformed the industry average of 2.1%. Since the same quarter one year prior, revenues slightly dropped by 1.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. When compared to other companies in the Diversified Consumer Services industry and the overall market, NATIONAL AMERN UNIV HLDG INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $1.74 million or 78.37% 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: National American University Holdings Ratings Report

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At the close, Lime Energy ( LIME) was down $0.05 (1.8%) to $2.74 on average volume. Throughout the day, 12,520 shares of Lime Energy exchanged hands as compared to its average daily volume of 12,200 shares. The stock ranged in price between $2.72-$2.76 after having opened the day at $2.76 as compared to the previous trading day's close of $2.79.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $10.2 million and is part of the services sector. Shares are down 3.5% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Lime Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LIME 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 Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 28.12%. Regardless of LIME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, LIME's net profit margin of -21.66% significantly underperformed when compared to the industry average.
  • Looking at the price performance of LIME's shares over the past 12 months, there is not much good news to report: the stock is down 51.61%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier 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.
  • LIME ENERGY CO's earnings per share declined by 7.9% 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, LIME ENERGY CO continued to lose money by earning -$3.88 versus -$4.48 in the prior year.
  • LIME 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. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.61, displays a potential problem in covering short-term cash needs.

You can view the full analysis from the report here: Lime Energy Ratings Report

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UniTek Global Services ( UNTK) was another company that pushed the Diversified Services industry lower today. UniTek Global Services was down $0.09 (5.7%) to $1.50 on light volume. Throughout the day, 7,878 shares of UniTek Global Services exchanged hands as compared to its average daily volume of 19,900 shares. The stock ranged in price between $1.41-$1.62 after having opened the day at $1.45 as compared to the previous trading day's close of $1.59.

UniTek Global Services, Inc. provides technical services to the wireless telecommunications, public safety, satellite television, and broadband cable industries in the United States and Canada. The company operates in two segments, Fulfillment, and Engineering and Construction. UniTek Global Services has a market cap of $30.4 million and is part of the services sector. Shares are down 4.8% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate UniTek Global Services a buy, 1 analyst rates it a sell, and 1 rates it a hold.

TheStreet Ratings rates UniTek Global Services 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 UNTK go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Construction & Engineering industry. The net income has decreased by 12.1% when compared to the same quarter one year ago, dropping from -$22.65 million to -$25.39 million.
  • The debt-to-equity ratio is very high at 16.57 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, UNTK maintains a poor quick ratio of 0.95, which illustrates the inability to avoid short-term cash problems.
  • 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 Construction & Engineering industry and the overall market, UNITEK GLOBAL SERVICES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for UNITEK GLOBAL SERVICES INC is rather low; currently it is at 16.93%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -23.75% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $10.77 million or 23.82% 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: UniTek Global Services 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.

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