3 Stocks Pushing The Services Sector Lower

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The Services sector as a whole closed the day down 1.1% versus the S&P 500, which was down 0.7%. Laggards within the Services sector included Birks Group ( BGI), down 4.6%, Alon Blue Square Israel ( BSI), down 4.4%, Point 360 ( PTSX), down 3.4%, Spar Group ( SGRP), down 2.0% and Nevada Gold & Casinos ( UWN), down 1.7%.

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

Companhia Brasileira De Distribuicao ( CBD) is one of the companies that pushed the Services sector lower today. Companhia Brasileira De Distribuicao was down $1.83 (3.7%) to $48.20 on average volume. Throughout the day, 753,177 shares of Companhia Brasileira De Distribuicao exchanged hands as compared to its average daily volume of 578,700 shares. The stock ranged in price between $48.12-$49.30 after having opened the day at $49.22 as compared to the previous trading day's close of $50.03.

Companhia Brasileira de Distribuicao is engaged in the retail of food, clothing, home appliances, electronics, and other products in Brazil. It operates in four segments: Retail, Home appliances, Cash & Carry, and E-commerce. Companhia Brasileira De Distribuicao has a market cap of $13.4 billion and is part of the retail industry. Shares are up 12.0% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Companhia Brasileira De Distribuicao a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Companhia Brasileira De Distribuicao as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including poor profit margins and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on CBD go as follows:

  • The revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 27.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Food & Staples Retailing industry. The net income increased by 1195.0% when compared to the same quarter one year prior, rising from $9.46 million to $122.54 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry, implying reduced upside potential.
  • CBD's debt-to-equity ratio of 0.85 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CBD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.54 is low and demonstrates weak liquidity.
  • The gross profit margin for CIA BRASILEIRA DE DISTRIB is currently lower than what is desirable, coming in at 26.11%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.73% trails that of the industry average.

You can view the full analysis from the report here: Companhia Brasileira De Distribuicao Ratings Report

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At the close, Nevada Gold & Casinos ( UWN) was down $0.02 (1.7%) to $1.14 on heavy volume. Throughout the day, 31,083 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 20,200 shares. The stock ranged in price between $1.13-$1.16 after having opened the day at $1.15 as compared to the previous trading day's close of $1.16.

Nevada Gold & Casinos, Inc., a gaming company, is engaged in financing, developing, owning, and operating gaming properties and projects primarily in Washington and South Dakota. The company operates in three segments: Washington Gold, South Dakota Gold, and Corporate. Nevada Gold & Casinos has a market cap of $19.1 million and is part of the retail industry. Shares are down 13.9% year-to-date as of the close of trading on Monday.

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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 growth in earnings per share, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • NEVADA GOLD & CASINOS INC has improved earnings per share by 33.3% 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, NEVADA GOLD & CASINOS INC increased its bottom line by earning $0.03 versus $0.00 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 42.6% when compared to the same quarter one year prior, rising from $0.45 million to $0.65 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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 Hotels, Restaurants & Leisure industry and the overall market, NEVADA GOLD & CASINOS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, UWN 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.

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.

Spar Group ( SGRP) was another company that pushed the Services sector lower today. Spar Group was down $0.03 (2.0%) to $1.43 on average volume. Throughout the day, 14,810 shares of Spar Group exchanged hands as compared to its average daily volume of 14,300 shares. The stock ranged in price between $1.40-$1.44 after having opened the day at $1.44 as compared to the previous trading day's close of $1.46.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $28.9 million and is part of the retail industry. Shares are down 29.1% year-to-date as of the close of trading on Monday.

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 notable return on equity. 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 SGRP go as follows:

  • SGRP's revenue growth has slightly outpaced the industry average of 12.3%. Since the same quarter one year prior, revenues rose by 12.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SGRP has a quick ratio of 2.18, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP 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 year. During the past fiscal year, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 in the prior year.
  • The gross profit margin for SPAR GROUP INC is rather low; currently it is at 24.90%. Regardless of SGRP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SGRP's net profit margin of 1.86% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to -$1.92 million or 197.21% 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: 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.

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