3 Stocks Pushing The Diversified Services Industry Lower

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The Diversified Services industry as a whole closed the day down 0.1% versus the S&P 500, which was up 0.1%. Laggards within the Diversified Services industry included Spar Group ( SGRP), down 4.8%, SmartPros ( SPRO), down 3.3%, Cambium Learning Group ( ABCD), down 4.5%, PDI ( PDII), down 3.1% and China Yida ( CNYD), down 2.7%.

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

PDI ( PDII) is one of the companies that pushed the Diversified Services industry lower today. PDI was down $0.08 (3.1%) to $2.51 on heavy volume. Throughout the day, 26,793 shares of PDI exchanged hands as compared to its average daily volume of 17,800 shares. The stock ranged in price between $2.45-$2.61 after having opened the day at $2.48 as compared to the previous trading day's close of $2.59.

PDI, Inc. provides outsourced commercial services to pharmaceutical, biotechnology, and healthcare companies in the United States. PDI has a market cap of $38.6 million and is part of the services sector. Shares are down 46.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates PDI a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates PDI as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on PDII 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 Health Care Providers & Services industry. The net income has significantly decreased by 200.7% when compared to the same quarter one year ago, falling from -$0.88 million to -$2.66 million.
  • The gross profit margin for PDI INC is rather low; currently it is at 16.38%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.41% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$1.83 million or 1.61% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 46.53%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 183.33% compared to the year-earlier quarter. 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.
  • PDI 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 reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PDI INC continued to lose money by earning -$0.31 versus -$1.75 in the prior year. For the next year, the market is expecting a contraction of 111.3% in earnings (-$0.66 versus -$0.31).

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

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At the close, Cambium Learning Group ( ABCD) was down $0.07 (4.5%) to $1.50 on heavy volume. Throughout the day, 63,236 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 24,400 shares. The stock ranged in price between $1.29-$1.56 after having opened the day at $1.54 as compared to the previous trading day's close of $1.57.

Cambium Learning Group, Inc. operates as an educational solutions and services company in the United States. It operates in four segments: Voyager Sopris Learning (VSL), Learning A-Z, ExploreLearning, and Kurzweil/IntelliTools. Cambium Learning Group has a market cap of $69.6 million and is part of the services sector. Shares are down 6.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Cambium Learning Group as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ABCD 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 Diversified Consumer Services industry. The net income has significantly decreased by 398.8% when compared to the same quarter one year ago, falling from $0.43 million to -$1.29 million.
  • Net operating cash flow has significantly decreased to $0.37 million or 98.65% 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 share price of CAMBIUM LEARNING GROUP INC has not done very well: it is down 9.89% 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.
  • CAMBIUM LEARNING GROUP 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, CAMBIUM LEARNING GROUP INC continued to lose money by earning -$0.31 versus -$2.72 in the prior year.
  • ABCD, with its decline in revenue, underperformed when compared the industry average of 6.8%. Since the same quarter one year prior, revenues fell by 15.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Cambium Learning 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.

Spar Group ( SGRP) was another company that pushed the Diversified Services industry lower today. Spar Group was down $0.08 (4.8%) to $1.57 on heavy volume. Throughout the day, 34,595 shares of Spar Group exchanged hands as compared to its average daily volume of 14,600 shares. The stock ranged in price between $1.52-$1.65 after having opened the day at $1.65 as compared to the previous trading day's close of $1.65.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $31.2 million and is part of the services sector. Shares are down 16.7% year-to-date as of the close of trading on Tuesday.

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 8.0%. 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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