3 Diversified Services Stocks Nudging The Industry Higher

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 30.89 points (-0.2%) at 17,068 as of Tuesday, Sept. 2, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,485 issues advancing vs. 1,589 declining with 141 unchanged.

The Diversified Services industry as a whole closed the day up 0.7% versus the S&P 500, which was down 0.1%. Top gainers within the Diversified Services industry included General Employment ( JOB), up 11.0%, Universal Security Instruments ( UUU), up 1.7%, Spar Group ( SGRP), up 4.9%, Command Security ( MOC), up 9.3% and AeroCentury ( ACY), up 2.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Command Security ( MOC) is one of the companies that pushed the Diversified Services industry higher today. Command Security was up $0.20 (9.3%) to $2.38 on heavy volume. Throughout the day, 79,056 shares of Command Security exchanged hands as compared to its average daily volume of 10,100 shares. The stock ranged in a price between $2.11-$2.40 after having opened the day at $2.18 as compared to the previous trading day's close of $2.18.

Command Security Corporation provides uniformed security officers and aviation security services to commercial, financial, industrial, aviation, and governmental customers in the United States. The company operates through Security and Aviation Safeguards divisions. Command Security has a market cap of $20.7 million and is part of the services sector. Shares are up 5.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Command Security a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates Command Security as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on MOC go as follows:

  • Powered by its strong earnings growth of 80.00% and other important driving factors, this stock has surged by 55.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although MOC had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • COMMAND SECURITY CORP 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, COMMAND SECURITY CORP increased its bottom line by earning $0.12 versus $0.04 in the prior year.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Services & Supplies industry average, but is greater than that of the S&P 500. The net income increased by 67.2% when compared to the same quarter one year prior, rising from -$0.42 million to -$0.14 million.
  • The gross profit margin for COMMAND SECURITY CORP is currently extremely low, coming in at 13.03%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.35% is significantly below that of the industry average.

You can view the full analysis from the report here: Command Security 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, Spar Group ( SGRP) was up $0.07 (4.9%) to $1.49 on light volume. Throughout the day, 303 shares of Spar Group exchanged hands as compared to its average daily volume of 14,200 shares. The stock ranged in a price between $1.49-$1.52 after having opened the day at $1.52 as compared to the previous trading day's close of $1.42.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $29.2 million and is part of the services sector. Shares are down 28.3% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Spar Group a buy, no analysts rate it a sell, and none rate it a hold.

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

TheStreet Ratings rates Spar Group as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 12.4%. Since the same quarter one year prior, revenues rose by 12.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • SGRP's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SGRP has a quick ratio of 2.08, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 in the prior year.
  • Net operating cash flow has significantly decreased to $2.47 million or 50.56% 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, 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 Media industry. The net income has significantly decreased by 938.6% when compared to the same quarter one year ago, falling from $0.04 million to -$0.37 million.

You can view the full analysis from the report here: Spar Group 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 higher today. Universal Security Instruments was up $0.07 (1.7%) to $4.05 on light volume. Throughout the day, 1,400 shares of Universal Security Instruments exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in a price between $3.98-$4.05 after having opened the day at $4.00 as compared to the previous trading day's close of $3.98.

Universal Security Instruments, Inc. designs, markets, and distributes safety and security products in the United States and internationally. Universal Security Instruments has a market cap of $9.2 million and is part of the services sector. Shares are down 8.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Universal Security Instruments a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Universal Security Instruments 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, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on UUU go as follows:

  • UNIVERSAL SECURITY INSTRUMNT 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, UNIVERSAL SECURITY INSTRUMNT reported poor results of -$1.94 versus -$0.20 in the prior year.
  • 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 Electronic Equipment, Instruments & Components industry. The net income has significantly decreased by 1532.4% when compared to the same quarter one year ago, falling from $0.11 million to -$1.50 million.
  • 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 Electronic Equipment, Instruments & Components 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.
  • The gross profit margin for UNIVERSAL SECURITY INSTRUMNT is currently extremely low, coming in at 6.48%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -57.03% is significantly below that of the industry average.
  • The share price of UNIVERSAL SECURITY INSTRUMNT has not done very well: it is down 14.20% 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

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

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.

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