3 Stocks Pushing The Services Sector Lower

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The Services sector as a whole closed the day up 0.6% versus the S&P 500, which was up 0.9%. Laggards within the Services sector included Rada Electronics Industries ( RADA), down 2.0%, Lime Energy ( LIME), down 1.8%, Nevada Gold & Casinos ( UWN), down 2.4%, Onvia ( ONVI), down 5.2% and Sino-Global Shipping America ( SINO), down 2.3%.

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

Sino-Global Shipping America ( SINO) is one of the companies that pushed the Services sector lower today. Sino-Global Shipping America was down $0.04 (2.3%) to $1.68 on light volume. Throughout the day, 6,698 shares of Sino-Global Shipping America exchanged hands as compared to its average daily volume of 16,200 shares. The stock ranged in price between $1.66-$1.70 after having opened the day at $1.70 as compared to the previous trading day's close of $1.72.

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 $7.7 million and is part of the diversified services industry. Shares are down 31.2% 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 relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on SINO go as follows:

  • In its most recent trading session, SINO 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • 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

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

At the close, Nevada Gold & Casinos ( UWN) was down $0.03 (2.4%) to $1.20 on light volume. Throughout the day, 1,281 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 18,800 shares. The stock ranged in price between $1.20-$1.24 after having opened the day at $1.23 as compared to the previous trading day's close of $1.23.

Nevada Gold & Casinos, Inc., a gaming company, engages in financing, developing, owning, and operating gaming properties and projects primarily in Washington, South Dakota, and Colorado. The company operates in four segments: Washington Gold, South Dakota Gold, Corporate, and Assets. Nevada Gold & Casinos has a market cap of $19.6 million and is part of the diversified services industry. Shares are down 11.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Nevada Gold & Casinos 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, weak operating cash flow and relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, UWN has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 37.29% is the gross profit margin for NEVADA GOLD & CASINOS INC which we consider to be strong. Regardless of UWN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UWN's net profit margin of -1.37% significantly underperformed when compared to the industry average.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 186.4% when compared to the same quarter one year ago, falling from $0.24 million to -$0.20 million.
  • Net operating cash flow has significantly decreased to $0.41 million or 69.13% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, NEVADA GOLD & CASINOS INC has marginally lower results.

You can view the full analysis from the report here: Nevada Gold & Casinos 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.

Lime Energy ( LIME) was another company that pushed the Services sector lower today. Lime Energy was down $0.04 (1.8%) to $2.16 on light volume. Throughout the day, 2,146 shares of Lime Energy exchanged hands as compared to its average daily volume of 10,000 shares. The stock ranged in price between $2.11-$2.24 after having opened the day at $2.20 as compared to the previous trading day's close of $2.20.

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 $8.4 million and is part of the diversified services industry. Shares are down 22.1% year-to-date as of the close of trading on Friday.

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

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

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • Net operating cash flow has significantly decreased to -$6.94 million or 339.08% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 31.90%. 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 -9.51% significantly underperformed when compared to the industry average.
  • LIME'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 65.44%, 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 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 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.
  • 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 0.63, displays a potential problem in covering short-term cash needs.

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