3 Stocks Pushing The Financial Services Industry Lower

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The Financial Services industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.8%. Laggards within the Financial Services industry included Institutional Financial Markets ( IFMI), down 1.5%, Equus Total Return ( EQS), down 6.5%, US Global Investors ( GROW), down 4.5%, Marine Petroleum ( MARPS), down 1.7% and China Ceramics ( CCCL), down 4.4%.

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

HD Supply Holdings ( HDS) is one of the companies that pushed the Financial Services industry lower today. HD Supply Holdings was down $0.59 (2.0%) to $28.76 on average volume. Throughout the day, 1,255,744 shares of HD Supply Holdings exchanged hands as compared to its average daily volume of 1,083,800 shares. The stock ranged in price between $28.69-$29.25 after having opened the day at $29.10 as compared to the previous trading day's close of $29.35.

HD Supply Holdings, Inc. operates as an industrial distribution company in North America. It operates in four segments: Facilities Maintenance, Waterworks, Power Solutions, and Construction & Industrial - White Cap. HD Supply Holdings has a market cap of $5.7 billion and is part of the services sector. Shares are up 22.2% year-to-date as of the close of trading on Friday. Currently there are 11 analysts who rate HD Supply Holdings a buy, no analysts rate it a sell, and 2 rate it a hold.

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TheStreet Ratings rates HD Supply Holdings as a sell. Among the areas we feel are negative, one of the most important has been poor profit margins.

Highlights from TheStreet Ratings analysis on HDS go as follows:

  • The gross profit margin for HD SUPPLY HOLDINGS INC is currently lower than what is desirable, coming in at 29.59%. Regardless of HDS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.96% trails the industry average.
  • This stock has increased by 26.21% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • HD SUPPLY HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.36 versus -$1.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 166.7% when compared to the same quarter one year prior, rising from -$72.00 million to $48.00 million.
  • Net operating cash flow has significantly increased by 965.00% to $173.00 million when compared to the same quarter last year. In addition, HD SUPPLY HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 8.31%.

You can view the full analysis from the report here: HD Supply Holdings Ratings Report

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