3 Stocks Pushing The Services Sector Lower

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The Services sector as a whole closed the day up 0.4% versus the S&P 500, which was unchanged. Laggards within the Services sector included Birks Group ( BGI), down 4.9%, Bowl America ( BWL.A), down 1.9%, Spar Group ( SGRP), down 2.6%, General Employment ( JOB), down 6.1% and Sino-Global Shipping America ( SINO), down 3.8%.

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

Maximus ( MMS) is one of the companies that pushed the Services sector lower today. Maximus was down $2.37 (5.1%) to $43.71 on heavy volume. Throughout the day, 751,887 shares of Maximus exchanged hands as compared to its average daily volume of 379,000 shares. The stock ranged in price between $42.47-$45.13 after having opened the day at $44.15 as compared to the previous trading day's close of $46.08.

MAXIMUS, Inc. provides business process services to government health and human services agencies in the United States, Australia, Canada, the United Kingdom, and Saudi Arabia. The company operates in two segments, Health Services and Human Services. Maximus has a market cap of $3.0 billion and is part of the diversified services industry. Shares are up 4.8% year-to-date as of the close of trading on Friday. Currently there are 3 analysts who rate Maximus a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Maximus as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on MMS go as follows:

  • The revenue growth greatly exceeded the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 41.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • MMS's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, MMS has a quick ratio of 1.85, which demonstrates the ability of the company to cover short-term liquidity needs.
  • MAXIMUS INC has improved earnings per share by 29.7% 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 two years. We feel that this trend should continue. During the past fiscal year, MAXIMUS INC increased its bottom line by earning $1.68 versus $1.10 in the prior year. This year, the market expects an improvement in earnings ($2.05 versus $1.68).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the IT Services industry average, but is less than that of the S&P 500. The net income increased by 30.0% when compared to the same quarter one year prior, rising from $31.69 million to $41.21 million.

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

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At the close, Sino-Global Shipping America ( SINO) was down $0.09 (3.8%) to $2.25 on light volume. Throughout the day, 1,200 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 7,700 shares. The stock ranged in price between $2.25-$2.34 after having opened the day at $2.34 as compared to the previous trading day's close of $2.34.

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 $11.1 million and is part of the diversified services industry. Shares are down 6.0% year-to-date as of the close of trading on Friday. 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. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from TheStreet Ratings analysis on SINO go as follows:

  • This stock has increased by 60.95% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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 decline in revenue, underperformed when compared the industry average of 9.4%. Since the same quarter one year prior, revenues fell by 10.6%. 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 gross profit margin for SINO-GLOBAL SHIPPING AMERICA is rather high; currently it is at 56.07%. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of 15.58% trails the industry average.

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

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Spar Group ( SGRP) was another company that pushed the Services sector lower today. Spar Group was down $0.04 (2.6%) to $1.50 on heavy volume. Throughout the day, 82,895 shares of Spar Group exchanged hands as compared to its average daily volume of 8,300 shares. The stock ranged in price between $1.50-$1.54 after having opened the day at $1.54 as compared to the previous trading day's close of $1.54.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $31.8 million and is part of the diversified services industry. Shares are down 22.2% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Spar Group as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • SPAR GROUP INC 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 two years. During the past fiscal year, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 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 Media industry. The net income increased by 134.1% when compared to the same quarter one year prior, rising from $1.33 million to $3.11 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 14.9%. Since the same quarter one year prior, revenues slightly increased by 7.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SGRP has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.

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.

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