3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day down 0.2% versus the S&P 500, which was up 0.7%. Laggards within the Diversified Services industry included General Employment ( JOB), down 7.0%, Wilhelmina International ( WHLMD), down 5.8%, Wilhelmina International ( WHLM), down 5.8%, Bioanalytical Systems ( BASI), down 2.5% and Onvia ( ONVI), down 1.6%.

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

Barrett Business Services ( BBSI) is one of the companies that pushed the Diversified Services industry lower today. Barrett Business Services was down $8.95 (15.5%) to $48.69 on heavy volume. Throughout the day, 993,969 shares of Barrett Business Services exchanged hands as compared to its average daily volume of 76,900 shares. The stock ranged in price between $43.88-$57.33 after having opened the day at $57.29 as compared to the previous trading day's close of $57.64.

Barrett Business Services, Inc. provides business management solutions for small and medium-sized companies in the United States. Barrett Business Services has a market cap of $412.1 million and is part of the services sector. Shares are down 38.1% year-to-date as of the close of trading on Monday. Currently there are 2 analysts who rate Barrett Business Services a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Barrett Business Services as a buy. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income, robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on BBSI go as follows:

  • BARRETT BUSINESS SVCS INC has improved earnings per share by 22.5% 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. We feel that this trend should continue. During the past fiscal year, BARRETT BUSINESS SVCS INC increased its bottom line by earning $2.39 versus $1.92 in the prior year. This year, the market expects an improvement in earnings ($3.05 versus $2.39).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Professional Services industry. The net income increased by 23.7% when compared to the same quarter one year prior, going from $5.89 million to $7.28 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 20.9%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BBSI's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.12, which illustrates the ability to avoid short-term cash problems.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Professional Services industry and the overall market, BARRETT BUSINESS SVCS INC's return on equity significantly exceeds that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Barrett Business Services Ratings Report

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At the close, Bioanalytical Systems ( BASI) was down $0.06 (2.5%) to $2.29 on light volume. Throughout the day, 4,431 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 11,000 shares. The stock ranged in price between $2.19-$2.29 after having opened the day at $2.19 as compared to the previous trading day's close of $2.35.

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 $18.2 million and is part of the services sector. Shares are down 16.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Bioanalytical Systems as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on BASI 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 Life Sciences Tools & Services industry. The net income has significantly decreased by 62.7% when compared to the same quarter one year ago, falling from $0.58 million to $0.22 million.
  • Net operating cash flow has significantly decreased to $0.21 million or 75.43% 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'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.
  • BIOANALYTICAL SYSTEMS INC 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. 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, BIOANALYTICAL SYSTEMS INC turned its bottom line around by earning $0.09 versus -$0.87 in the prior year.
  • 39.46% is the gross profit margin for BIOANALYTICAL SYSTEMS INC which we consider to be strong. Regardless of BASI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.56% trails the industry average.

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

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Wilhelmina International ( WHLM) was another company that pushed the Diversified Services industry lower today. Wilhelmina International was down $0.37 (5.8%) to $6.05 on average volume. Throughout the day, 2,404 shares of Wilhelmina International exchanged hands as compared to its average daily volume of 2,500 shares. The stock ranged in price between $6.05-$6.42 after having opened the day at $6.42 as compared to the previous trading day's close of $6.42.

Wilhelmina International has a market cap of $37.8 million and is part of the services sector. Shares are up 7.0% year-to-date as of the close of trading on Monday.

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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