3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day down 0.9% versus the S&P 500, which was unchanged. Laggards within the Diversified Services industry included UniTek Global Services ( UNTK), down 5.0%, DLH Holdings ( DLHC), down 4.3%, National American University Holdings ( NAUH), down 2.1%, Ambassadors Group ( EPAX), down 1.9% and AeroCentury ( ACY), down 2.2%.

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

Ambassadors Group ( EPAX) is one of the companies that pushed the Diversified Services industry lower today. Ambassadors Group was down $0.07 (1.9%) to $3.69 on heavy volume. Throughout the day, 114,200 shares of Ambassadors Group exchanged hands as compared to its average daily volume of 15,200 shares. The stock ranged in price between $3.62-$3.98 after having opened the day at $3.75 as compared to the previous trading day's close of $3.76.

Ambassadors Group, Inc., an educational company, organizes and promotes worldwide educational travel programs for students and professional. The company's Ambassador Programs and Other segment offers educational travel services to students and professionals. Ambassadors Group has a market cap of $63.9 million and is part of the services sector. Shares are down 19.1% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Ambassadors Group as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on EPAX 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 Hotels, Restaurants & Leisure industry and the overall market, AMBASSADORS GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has declined marginally to $19.37 million or 3.80% when compared to the same quarter last year. Despite a decrease in cash flow AMBASSADORS GROUP INC is still fairing well by exceeding its industry average cash flow growth rate of -22.05%.
  • AMBASSADORS GROUP INC's earnings per share improvement from the most recent quarter was slightly positive. 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, AMBASSADORS GROUP INC swung to a loss, reporting -$0.41 versus $0.09 in the prior year.
  • In its most recent trading session, EPAX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • EPAX, with its very weak revenue results, has greatly underperformed against the industry average of 3.8%. Since the same quarter one year prior, revenues plummeted by 51.7%. 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: Ambassadors Group Ratings Report

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At the close, National American University Holdings ( NAUH) 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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UniTek Global Services ( UNTK) was another company that pushed the Diversified Services industry lower today. UniTek Global Services was down $0.08 (5.0%) to $1.51 on light volume. Throughout the day, 9,978 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

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