3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.1%. Laggards within the Diversified Services industry included RLJ Entertainment ( RLJE), down 4.6%, PDI ( PDII), down 6.7%, China Yida ( CNYD), down 7.2%, Amrep ( AXR), down 1.9% and EnviroStar ( EVI), down 11.1%.

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

China Yida ( CNYD) is one of the companies that pushed the Diversified Services industry lower today. China Yida was down $0.26 (7.2%) to $3.36 on average volume. Throughout the day, 12,318 shares of China Yida exchanged hands as compared to its average daily volume of 13,700 shares. The stock ranged in price between $3.27-$3.58 after having opened the day at $3.55 as compared to the previous trading day's close of $3.62.

China Yida Holding Co., together with its subsidiaries, is engaged in the tourism and advertisement businesses in the People's Republic of China. The company operates through two segments, Advertisement and Tourism. China Yida has a market cap of $14.2 million and is part of the services sector. Shares are up 25.7% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates China Yida 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CNYD go as follows:

  • CHINA YIDA HOLDING CO's earnings per share declined by 26.5% in the most recent quarter compared to 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, CHINA YIDA HOLDING CO swung to a loss, reporting -$4.37 versus $0.06 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 Media industry. The net income has significantly decreased by 61.5% when compared to the same quarter one year ago, falling from -$3.12 million to -$5.03 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, CHINA YIDA HOLDING CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of CHINA YIDA HOLDING CO has not done very well: it is down 16.00% 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.
  • CNYD, with its decline in revenue, underperformed when compared the industry average of 12.3%. Since the same quarter one year prior, revenues fell by 10.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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

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