3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day up 0.3% versus the S&P 500, which was unchanged. Laggards within the Diversified Services industry included China HGS Real Estate ( HGSH), down 9.5%, AeroCentury ( ACY), down 2.6%, National American University Holdings ( NAUH), down 1.9%, Industrial Services of America ( IDSA), down 4.3% and Mastech Holdings ( MHH), down 1.7%.

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

National American University Holdings ( NAUH) is one of the companies that pushed the Diversified Services industry lower today. National American University Holdings was down $0.06 (1.9%) to $3.06 on light volume. Throughout the day, 4,643 shares of National American University Holdings exchanged hands as compared to its average daily volume of 21,100 shares. The stock ranged in price between $3.06-$3.10 after having opened the day at $3.08 as compared to the previous trading day's close of $3.12.

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 $78.6 million and is part of the services sector. Shares are down 10.6% year-to-date as of the close of trading on Tuesday. 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, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on NAUH go as follows:

  • Although NAUH's debt-to-equity ratio of 0.24 is very low, it is currently higher than that of the industry average. 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. Despite the strong results of the gross profit margin, NAUH's net profit margin of 3.52% significantly trails the industry average.
  • 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.
  • 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.

You can view the full analysis from the report here: National American University Holdings Ratings Report

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At the close, AeroCentury ( ACY) was down $0.41 (2.6%) to $15.54 on light volume. Throughout the day, 2,184 shares of AeroCentury exchanged hands as compared to its average daily volume of 3,200 shares. The stock ranged in price between $15.50-$15.54 after having opened the day at $15.50 as compared to the previous trading day's close of $15.95.

AeroCentury Corp. acquires and invests in used regional aircraft and aircraft engines for lease to regional carriers worldwide. As of February 28, 2014, the company owned 9 Bombardier Dash-8-300, 3 Bombardier CRJ-700, 7 Fokker 100, 3 Bombardier Dash-8-Q400, and 1 Bombardier CRJ-705 aircraft. AeroCentury has a market cap of $24.4 million and is part of the services sector. Shares are down 8.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates AeroCentury a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates AeroCentury as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ACY go as follows:

  • The debt-to-equity ratio is very high at 2.26 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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 Trading Companies & Distributors industry and the overall market, AEROCENTURY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • AEROCENTURY CORP has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, AEROCENTURY CORP reported lower earnings of $1.86 versus $3.31 in the prior year. For the next year, the market is expecting a contraction of 72.6% in earnings ($0.51 versus $1.86).
  • 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 Trading Companies & Distributors industry. The net income has significantly decreased by 90.3% when compared to the same quarter one year ago, falling from $3.82 million to $0.37 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 28.97%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 90.45% compared to the year-earlier 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.

You can view the full analysis from the report here: AeroCentury 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.

China HGS Real Estate ( HGSH) was another company that pushed the Diversified Services industry lower today. China HGS Real Estate was down $0.23 (9.5%) to $2.18 on average volume. Throughout the day, 14,382 shares of China HGS Real Estate exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in price between $2.10-$2.35 after having opened the day at $2.33 as compared to the previous trading day's close of $2.41.

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 $113.1 million and is part of the services sector. Shares are down 57.8% year-to-date as of the close of trading on Tuesday.

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.

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Highlights from TheStreet Ratings analysis on HGSH go as follows:

  • HGSH's very impressive revenue growth greatly exceeded the industry average of 19.5%. 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

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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