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 0.4% versus the S&P 500, which was down 0.6%. Laggards within the Services sector included Point 360 ( PTSX), down 6.9%, NTN Buzztime ( NTN), down 2.9%, Tiger Media ( IDI), down 4.2%, Forward Industries ( FORD), down 3.0% and SmartPros ( SPRO), down 4.5%.

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 $1.06 (2.2%) to $47.36 on average volume. Throughout the day, 474,963 shares of Companhia Brasileira De Distribuicao exchanged hands as compared to its average daily volume of 585,100 shares. The stock ranged in price between $46.96-$47.58 after having opened the day at $47.25 as compared to the previous trading day's close of $48.42.

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 $12.8 billion and is part of the retail industry. Shares are up 8.4% year-to-date as of the close of trading on Thursday. 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, Tiger Media ( IDI) was down $0.02 (4.2%) to $0.56 on light volume. Throughout the day, 3,260 shares of Tiger Media exchanged hands as compared to its average daily volume of 44,800 shares. The stock ranged in price between $0.55-$0.56 after having opened the day at $0.55 as compared to the previous trading day's close of $0.58.

Tiger Media, Inc., a multi-platform media company, provides advertising services in the out-of-home advertising industry in the People's Republic of China. Tiger Media has a market cap of $20.3 million and is part of the retail industry. Shares are down 61.6% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Tiger Media as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDI go as follows:

  • TIGER MEDIA INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TIGER MEDIA INC reported poor results of -$0.12 versus -$0.03 in the prior year.
  • IDI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 70.66%, which is also worse than the performance of the S&P 500 Index. 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Media industry average, but is greater than that of the S&P 500. The net income increased by 1.9% when compared to the same quarter one year prior, going from -$0.88 million to -$0.86 million.
  • Compared to other companies in the Media industry and the overall market, TIGER MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • IDI has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.75, which clearly demonstrates the ability to cover short-term cash needs.

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

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NTN Buzztime ( NTN) was another company that pushed the Services sector lower today. NTN Buzztime was down $0.01 (2.9%) to $0.40 on heavy volume. Throughout the day, 157,762 shares of NTN Buzztime exchanged hands as compared to its average daily volume of 51,700 shares. The stock ranged in price between $0.38-$0.43 after having opened the day at $0.43 as compared to the previous trading day's close of $0.41.

NTN Buzztime, Inc. provides an entertainment and marketing services platform for hospitality venues that offer games, events, and entertainment experiences in the United States and Canada. NTN Buzztime has a market cap of $38.1 million and is part of the retail industry. Shares are down 34.1% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates NTN Buzztime as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

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Highlights from TheStreet Ratings analysis on NTN go as follows:

  • 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 1261.6% when compared to the same quarter one year ago, falling from -$0.10 million to -$1.35 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 Media industry and the overall market, NTN BUZZTIME INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$1.79 million or 1092.22% 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 gross profit margin for NTN BUZZTIME INC is rather high; currently it is at 67.02%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, NTN's net profit margin of -19.61% significantly underperformed when compared to the industry average.
  • NTN BUZZTIME INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, NTN BUZZTIME INC continued to lose money by earning -$0.01 versus -$0.02 in the prior year.

You can view the full analysis from the report here: NTN Buzztime 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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