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The Services sector as a whole closed the day up 0.9% versus the S&P 500, which was up 1.7%. Laggards within the Services sector included Radio One ( ROIA), down 5.5%, Alon Blue Square Israel ( BSI), down 1.9%, Point 360 ( PTSX), down 9.8%, John Wiley & Sons ( JW.B), down 2.3% and Nevada Gold & Casinos ( UWN), down 1.6%.

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

LATAM Airlines Group ( LFL) is one of the companies that pushed the Services sector lower today. LATAM Airlines Group was down $0.19 (1.6%) to $11.47 on average volume. Throughout the day, 860,678 shares of LATAM Airlines Group exchanged hands as compared to its average daily volume of 619,400 shares. The stock ranged in price between $11.28-$11.71 after having opened the day at $11.71 as compared to the previous trading day's close of $11.66.

LATAM Airlines Group S.A., together with its subsidiaries, provides passenger and cargo air transportation services in South America. LATAM Airlines Group has a market cap of $6.4 billion and is part of the transportation industry. Shares are down 28.5% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates LATAM Airlines Group a buy, 1 analyst rates it a sell, and 4 rate it a hold.

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TheStreet Ratings rates LATAM Airlines Group as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins, generally disappointing historical performance in the stock itself and generally high debt management risk.

Highlights from TheStreet Ratings analysis on LFL go as follows:

  • The gross profit margin for LATAM AIRLINES GROUP SA is currently lower than what is desirable, coming in at 28.87%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.93% trails that of the industry average.
  • Despite the current debt-to-equity ratio of 1.54, it is still below the industry average, suggesting that this level of debt is acceptable within the Airlines industry. Despite the fact that LFL's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.53 is low and demonstrates weak liquidity.
  • LFL has underperformed the S&P 500 Index, declining 23.33% from its price level of one year ago. 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Airlines industry average, but is greater than that of the S&P 500. The net income increased by 82.1% when compared to the same quarter one year prior, rising from -$329.83 million to -$58.91 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Airlines industry and the overall market, LATAM AIRLINES GROUP SA's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: LATAM Airlines Group Ratings Report

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At the close, Nevada Gold & Casinos ( UWN) was down $0.02 (1.6%) to $1.23 on light volume. Throughout the day, 6,782 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 21,500 shares. The stock ranged in price between $1.20-$1.29 after having opened the day at $1.26 as compared to the previous trading day's close of $1.25.

Nevada Gold & Casinos, Inc., a gaming company, is engaged in financing, developing, owning, and operating gaming properties and projects primarily in Washington and South Dakota. The company operates in three segments: Washington Gold, South Dakota Gold, and Corporate. Nevada Gold & Casinos has a market cap of $20.6 million and is part of the transportation industry. Shares are down 8.8% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Nevada Gold & Casinos 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 increase in stock price during the past year. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 5.8%. Since the same quarter one year prior, revenues slightly increased by 1.5%. 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, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, UWN has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 36.98% is the gross profit margin for NEVADA GOLD & CASINOS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, UWN's net profit margin of 2.22% significantly trails the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, NEVADA GOLD & CASINOS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Nevada Gold & Casinos Ratings Report

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Radio One ( ROIA) was another company that pushed the Services sector lower today. Radio One was down $0.15 (5.5%) to $2.60 on light volume. Throughout the day, 877 shares of Radio One exchanged hands as compared to its average daily volume of 2,900 shares. The stock ranged in price between $2.60-$2.71 after having opened the day at $2.71 as compared to the previous trading day's close of $2.75.

Radio One, Inc., together with its subsidiaries, operates as an urban-oriented multi-media company in the United States. The company operates through four segments: Radio Broadcasting, Reach Media, Internet, and Cable Television. Radio One has a market cap of $6.4 million and is part of the transportation industry. Shares are down 27.6% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Radio One as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.

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Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • 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, RADIO ONE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, ROIA has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The debt-to-equity ratio is very high at 19.00 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.63, which shows the ability to cover short-term cash needs.
  • ROIA, with its decline in revenue, underperformed when compared the industry average of 9.1%. Since the same quarter one year prior, revenues slightly dropped by 9.3%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for RADIO ONE INC is rather high; currently it is at 68.71%. Regardless of ROIA's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ROIA's net profit margin of -9.97% significantly underperformed when compared to the industry average.

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

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