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.

Two out of the three major indices traded up today One out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 14 points (0.1%) at 16,938 as of Monday, June 9, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,888 issues advancing vs. 1,089 declining with 160 unchanged.

The Services sector as a whole closed the day up 0.4% versus the S&P 500, which was unchanged. Top gainers within the Services sector included Sport Chalet ( SPCHA), up 4.0%, Learning Tree International ( LTRE), up 1.5%, Rada Electronics Industries ( RADA), up 4.0%, Discovery Communications ( DISCB), up 3.8% and China Metro-Rural Holdings ( CNR), up 3.4%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the sector higher today:

Discovery Communications ( DISCB) is one of the companies that pushed the Services sector higher today. Discovery Communications was up $3.02 (3.8%) to $81.67 on average volume. Throughout the day, 100 shares of Discovery Communications exchanged hands as compared to its average daily volume of 100 shares. The stock ranged in a price between $81.67-$81.67 after having opened the day at $81.67 as compared to the previous trading day's close of $78.65.

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 $521.1 million and is part of the retail industry. Shares are down 12.3% year-to-date as of the close of trading on Friday. 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, notable return on equity, expanding profit margins, good cash flow from operations and growth in earnings per share. 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:

  • DISCB's revenue growth has slightly outpaced the industry average of 14.9%. Since the same quarter one year prior, revenues rose by 22.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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.
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 90.64%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 16.30% is above that of the industry average.
  • Net operating cash flow has significantly increased by 83.96% to $241.00 million when compared to the same quarter last year. In addition, DISCOVERY COMMUNICATIONS INC has also vastly surpassed the industry average cash flow growth rate of 6.08%.
  • DISCOVERY COMMUNICATIONS INC's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past two years. 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 ($11.02 versus $2.97).

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

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At the close, Learning Tree International ( LTRE) was up $0.04 (1.5%) to $2.69 on light volume. Throughout the day, 1,014 shares of Learning Tree International exchanged hands as compared to its average daily volume of 1,700 shares. The stock ranged in a price between $2.58-$2.69 after having opened the day at $2.69 as compared to the previous trading day's close of $2.65.

Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses to meet the professional development needs of information technology (IT) professionals and managers worldwide. Learning Tree International has a market cap of $37.8 million and is part of the retail industry. Shares are down 15.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Learning Tree International a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Learning Tree International as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LTRE 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 Diversified Consumer Services industry. The net income has decreased by 14.6% when compared to the same quarter one year ago, dropping from -$4.02 million to -$4.60 million.
  • Net operating cash flow has significantly decreased to -$4.36 million or 87.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, LTRE has underperformed the S&P 500 Index, declining 6.27% 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 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 Diversified Consumer Services industry and the overall market, LEARNING TREE INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 42.87% is the gross profit margin for LEARNING TREE INTL INC which we consider to be strong. Regardless of LTRE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LTRE's net profit margin of -18.40% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Learning Tree International 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.

Sport Chalet ( SPCHA) was another company that pushed the Services sector higher today. Sport Chalet was up $0.04 (4.0%) to $1.04 on light volume. Throughout the day, 1,820 shares of Sport Chalet exchanged hands as compared to its average daily volume of 3,400 shares. The stock ranged in a price between $1.04-$1.04 after having opened the day at $1.04 as compared to the previous trading day's close of $1.00.

Sport Chalet, Inc. operates as a specialty sporting goods retailer in the United States. Sport Chalet has a market cap of $12.9 million and is part of the retail industry. Shares are down 4.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Sport Chalet a buy, no analysts rate it a sell, and none rate it a hold.

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.

Highlights from TheStreet Ratings analysis on SPCHA 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.
  • SPCHA'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 38.48%, 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.
  • The gross profit margin for SPORT CHALET INC is currently lower than what is desirable, coming in at 29.15%. Regardless of SPCHA'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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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.