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The Diversified Services industry as a whole closed the day down 0.4% versus the S&P 500, which was down 0.2%. Laggards within the Diversified Services industry included General Employment ( JOB), down 3.0%, Universal Security Instruments ( UUU), down 2.6%, NV5 Holdings ( NVEE), down 2.1%, SmartPros ( SPRO), down 4.2% and China HGS Real Estate ( HGSH), down 2.4%.

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

China HGS Real Estate ( HGSH) is one of the companies that pushed the Diversified Services industry lower today. China HGS Real Estate was down $0.06 (2.4%) to $2.48 on average volume. Throughout the day, 10,301 shares of China HGS Real Estate exchanged hands as compared to its average daily volume of 13,100 shares. The stock ranged in price between $2.42-$2.59 after having opened the day at $2.54 as compared to the previous trading day's close of $2.54.

China HGS Real Estate, Inc., through its subsidiary, Shaanxi Guangsha Investment and Development Group Co., Ltd, develops real estate properties in the People's Republic of China. It is involved in the construction and sale of residential apartments, parking lots, and commercial properties. China HGS Real Estate has a market cap of $116.2 million and is part of the services sector. Shares are down 57.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates China HGS Real Estate as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on HGSH go as follows:

  • HGSH's very impressive revenue growth greatly exceeded the industry average of 33.9%. Since the same quarter one year prior, revenues leaped by 157.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CHINA HGS REAL ESTATE 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, CHINA HGS REAL ESTATE INC increased its bottom line by earning $0.46 versus $0.11 in the prior year.
  • HGSH's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.13 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The gross profit margin for CHINA HGS REAL ESTATE INC is currently lower than what is desirable, coming in at 33.12%. It has decreased from the same quarter the previous year. Despite the weak results of the gross profit margin, the net profit margin of 28.67% has significantly outperformed against the industry average.
  • Net operating cash flow has significantly decreased to -$3.65 million or 2084.23% 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: China HGS Real Estate Ratings Report

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At the close, NV5 Holdings ( NVEE) was down $0.20 (2.1%) to $9.30 on light volume. Throughout the day, 700 shares of NV5 Holdings exchanged hands as compared to its average daily volume of 2,000 shares. The stock ranged in price between $9.30-$9.30 after having opened the day at $9.30 as compared to the previous trading day's close of $9.50.

NV5 Holdings has a market cap of $54.2 million and is part of the services sector. Shares are up 17.9% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates NV5 Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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Highlights from TheStreet Ratings analysis on NVEE go as follows:

You can view the full analysis from the report here: NV5 Holdings 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.

Universal Security Instruments ( UUU) was another company that pushed the Diversified Services industry lower today. Universal Security Instruments was down $0.10 (2.6%) to $3.80 on average volume. Throughout the day, 4,090 shares of Universal Security Instruments exchanged hands as compared to its average daily volume of 4,000 shares. The stock ranged in price between $3.78-$3.94 after having opened the day at $3.94 as compared to the previous trading day's close of $3.90.

Universal Security Instruments, Inc. designs, markets, and distributes safety and security products in the United States and Canada. Universal Security Instruments has a market cap of $9.3 million and is part of the services sector. Shares are down 7.8% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates Universal Security Instruments as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, poor profit margins and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on UUU 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 Electrical Equipment industry. The net income has significantly decreased by 1695.7% when compared to the same quarter one year ago, falling from $0.02 million to -$0.37 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Electrical Equipment industry and the overall market, UNIVERSAL SECURITY INSTRUMNT's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to $0.68 million or 45.83% 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.
  • The gross profit margin for UNIVERSAL SECURITY INSTRUMNT is currently lower than what is desirable, coming in at 30.38%. Regardless of UUU's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, UUU's net profit margin of -9.81% significantly underperformed when compared to the industry average.
  • The share price of UNIVERSAL SECURITY INSTRUMNT has not done very well: it is down 24.58% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

You can view the full analysis from the report here: Universal Security Instruments Ratings Report

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