3 Stocks Pushing The Financial Services Industry 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 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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close, China Ceramics ( CCCL) was down $0.05 (4.4%) to $1.05 on average volume. Throughout the day, 69,102 shares of China Ceramics exchanged hands as compared to its average daily volume of 74,600 shares. The stock ranged in price between $1.02-$1.13 after having opened the day at $1.11 as compared to the previous trading day's close of $1.10.

China Ceramics has a market cap of $22.4 million and is part of the services sector. Shares are down 55.0% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

US Global Investors ( GROW) was another company that pushed the Financial Services industry lower today. US Global Investors was down $0.16 (4.5%) to $3.43 on average volume. Throughout the day, 30,554 shares of US Global Investors exchanged hands as compared to its average daily volume of 22,000 shares. The stock ranged in price between $3.40-$3.60 after having opened the day at $3.52 as compared to the previous trading day's close of $3.59.

U.S. Global Investors, Inc. is a publicly owned investment manager. The firm primarily provides its services to investment companies. It also provides its services to pooled investment vehicles. The firm manages equity and fixed income mutual funds for its clients. US Global Investors has a market cap of $47.8 million and is part of the services sector. Shares are up 41.3% year-to-date as of the close of trading on Friday.

TheStreet Ratings rates US Global Investors as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Highlights from TheStreet Ratings analysis on GROW go as follows:

  • 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 Capital Markets industry and the overall market, U S GLOBAL INVESTORS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for U S GLOBAL INVESTORS INC is currently extremely low, coming in at 8.14%. Despite the low profit margin, it has increased significantly from the same period last year. Despite the mixed results of the gross profit margin, GROW's net profit margin of 7.30% is significantly lower than the industry average.
  • U S GLOBAL INVESTORS INC reported significant earnings per share improvement in the most recent quarter compared to 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, U S GLOBAL INVESTORS INC reported poor results of -$0.04 versus $0.00 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 158.0% when compared to the same quarter one year prior, rising from -$0.45 million to $0.26 million.
  • Net operating cash flow has significantly increased by 311.08% to $1.52 million when compared to the same quarter last year. In addition, U S GLOBAL INVESTORS INC has also vastly surpassed the industry average cash flow growth rate of -89.07%.

You can view the full analysis from the report here: US Global Investors 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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