3 Stocks Pushing The Services Sector Lower

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.

The Services sector as a whole closed the day down 0.6% versus the S&P 500, which was down 0.6%. Laggards within the Services sector included Starz ( STRZB), down 2.6%, General Employment ( JOB), down 9.4%, Radio One ( ROIA), down 12.8%, Wilhelmina International ( WHLMD), down 1.7% and Wilhelmina International ( WHLM), down 1.7%.

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

Copa Holdings ( CPA) is one of the companies that pushed the Services sector lower today. Copa Holdings was down $23.94 (15.9%) to $126.98 on heavy volume. Throughout the day, 2,653,581 shares of Copa Holdings exchanged hands as compared to its average daily volume of 292,400 shares. The stock ranged in price between $126.00-$135.65 after having opened the day at $133.68 as compared to the previous trading day's close of $150.92.

Copa Holdings, S.A. provides airline passenger and cargo services in Latin America. It provides services within Colombia; and international flights from various cities in Colombia to Panama, Venezuela, Ecuador, Mexico, Cuba, Guatemala, and Costa Rica. Copa Holdings has a market cap of $5.1 billion and is part of the transportation industry. Shares are down 5.7% year-to-date as of the close of trading on Wednesday. Currently there are 6 analysts who rate Copa Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Copa Holdings as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, increase in stock price during the past year and notable return on equity. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on CPA go as follows:

  • The revenue growth significantly trails the industry average of 49.0%. Since the same quarter one year prior, revenues rose by 11.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.52, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
  • COPA HOLDINGS SA has improved earnings per share by 33.2% 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, COPA HOLDINGS SA increased its bottom line by earning $9.63 versus $7.35 in the prior year. This year, the market expects an improvement in earnings ($11.48 versus $9.63).
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • 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 Airlines industry and the overall market on the basis of return on equity, COPA HOLDINGS SA has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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

At the close, Wilhelmina International ( WHLM) was down $0.12 (1.7%) to $6.88 on light volume. Throughout the day, 125 shares of Wilhelmina International exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in price between $6.88-$6.88 after having opened the day at $6.88 as compared to the previous trading day's close of $7.00.

Wilhelmina International has a market cap of $38.2 million and is part of the transportation industry. Shares are up 16.7% year-to-date as of the close of trading on Wednesday.

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Highlights from TheStreet Ratings analysis on WHLM go as follows:

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

Radio One ( ROIA) was another company that pushed the Services sector lower today. Radio One was down $0.43 (12.8%) to $2.92 on light volume. Throughout the day, 1,246 shares of Radio One exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in price between $2.91-$3.08 after having opened the day at $3.08 as compared to the previous trading day's close of $3.35.

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Internet, and Cable Television. Radio One has a market cap of $7.9 million and is part of the transportation industry. Shares are down 11.8% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates Radio One as a sell. Among the areas we feel are negative, one of the most important has been very high debt management risk by most measures.

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Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • Although ROIA's debt-to-equity ratio of 3.28 is very high, it is currently less than that of the industry average.
  • 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 Media industry and the overall market, RADIO ONE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RADIO ONE INC is rather high; currently it is at 68.71%. Regardless of ROIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ROIA's net profit margin of -9.97% significantly underperformed when compared to the industry average.
  • ROIA, with its decline in revenue, underperformed when compared the industry average of 12.1%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • RADIO ONE INC has improved earnings per share by 20.7% 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 year. During the past fiscal year, RADIO ONE INC continued to lose money by earning -$1.30 versus -$1.33 in the prior year.

You can view the full analysis from the report here: Radio One 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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