3 Stocks Pushing The Services Sector Lower

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The Services sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.6%. Laggards within the Services sector included Birks Group ( BGI), down 2.5%, Gray Television ( GTN.A), down 1.6%, Tiger Media ( IDI), down 4.8%, Bioanalytical Systems ( BASI), down 2.9% and VirtualScopics ( VSCP), down 5.7%.

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

VirtualScopics ( VSCP) is one of the companies that pushed the Services sector lower today. VirtualScopics was down $0.24 (5.7%) to $3.96 on light volume. Throughout the day, 4,472 shares of VirtualScopics exchanged hands as compared to its average daily volume of 6,400 shares. The stock ranged in price between $3.92-$4.32 after having opened the day at $4.01 as compared to the previous trading day's close of $4.20.

VirtualScopics, Inc. provides imaging solutions for the pharmaceutical, biotechnology, and medical device industries. VirtualScopics has a market cap of $12.6 million and is part of the leisure industry. Shares are up 21.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates VirtualScopics a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on VSCP go as follows:

  • The gross profit margin for VIRTUALSCOPICS INC is currently lower than what is desirable, coming in at 32.24%. Regardless of VSCP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, VSCP's net profit margin of -27.44% significantly underperformed when compared to the industry average.
  • VSCP has underperformed the S&P 500 Index, declining 10.41% from its price level of one year ago. 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.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Life Sciences Tools & Services industry and the overall market, VIRTUALSCOPICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • VSCP, with its decline in revenue, underperformed when compared the industry average of 21.8%. Since the same quarter one year prior, revenues slightly dropped by 7.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Net operating cash flow has significantly increased by 66.23% to -$0.42 million when compared to the same quarter last year. Despite an increase in cash flow, VIRTUALSCOPICS INC's average is still marginally south of the industry average growth rate of 71.19%.

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

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At the close, Bioanalytical Systems ( BASI) was down $0.06 (2.9%) to $2.07 on average volume. Throughout the day, 10,203 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 12,300 shares. The stock ranged in price between $2.02-$2.13 after having opened the day at $2.05 as compared to the previous trading day's close of $2.13.

Bioanalytical Systems, Inc. provides drug discovery and development services, and analytical instruments for pharmaceutical, biotechnology, academic, and government organizations in North America, the Pacific Rim, Europe, and internationally. Bioanalytical Systems has a market cap of $17.3 million and is part of the leisure industry. Shares are down 20.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Bioanalytical Systems as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from TheStreet Ratings analysis on BASI go as follows:

  • 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 Life Sciences Tools & Services industry and the overall market, BIOANALYTICAL SYSTEMS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The current debt-to-equity ratio, 0.58, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.30 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 40.75% is the gross profit margin for BIOANALYTICAL SYSTEMS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.70% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 85.51% to -$0.03 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 71.19%.
  • Investors have driven up the company's shares by 45.34% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the future course of this stock, we feel that the risks involved in investing in BASI do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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

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Tiger Media ( IDI) was another company that pushed the Services sector lower today. Tiger Media was down $0.03 (4.8%) to $0.57 on light volume. Throughout the day, 29,871 shares of Tiger Media exchanged hands as compared to its average daily volume of 40,700 shares. The stock ranged in price between $0.56-$0.59 after having opened the day at $0.59 as compared to the previous trading day's close of $0.60.

Tiger Media has a market cap of $21.4 million and is part of the leisure industry. Shares are down 60.3% year-to-date as of the close of trading on Tuesday.

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