3 Stocks Pushing The Services Sector 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 Services sector as a whole closed the day down 0.2% versus the S&P 500, which was unchanged. Laggards within the Services sector included General Employment ( JOB), down 12.5%, Point 360 ( PTSX), down 14.3%, China Metro-Rural Holdings ( CNR), down 4.5%, Alon Blue Square Israel ( BSI), down 3.8% and Bioanalytical Systems ( BASI), down 2.8%.

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

Canadian National Railway ( CNI) is one of the companies that pushed the Services sector lower today. Canadian National Railway was down $1.61 (2.3%) to $68.97 on average volume. Throughout the day, 1,204,783 shares of Canadian National Railway exchanged hands as compared to its average daily volume of 1,226,100 shares. The stock ranged in price between $68.91-$70.75 after having opened the day at $70.69 as compared to the previous trading day's close of $70.58.

Canadian National Railway Company, together with its subsidiaries, engages in rail and related transportation business in North America. Canadian National Railway has a market cap of $56.9 billion and is part of the transportation industry. Shares are up 23.8% year-to-date as of the close of trading on Friday. Currently there are 7 analysts who rate Canadian National Railway a buy, no analysts rate it a sell, and 7 rate it a hold.

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

TheStreet Ratings rates Canadian National Railway as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from TheStreet Ratings analysis on CNI go as follows:

  • CNI's revenue growth has slightly outpaced the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 15.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 27.60% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CNI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CANADIAN NATIONAL RAILWAY CO has improved earnings per share by 24.6% 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, CANADIAN NATIONAL RAILWAY CO increased its bottom line by earning $3.09 versus $3.06 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $3.09).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Road & Rail industry average. The net income increased by 21.0% when compared to the same quarter one year prior, going from $705.00 million to $853.00 million.
  • 49.52% is the gross profit margin for CANADIAN NATIONAL RAILWAY CO which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.35% is above that of the industry average.

You can view the full analysis from the report here: Canadian National Railway 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, Bioanalytical Systems ( BASI) was down $0.07 (2.8%) to $2.32 on average volume. Throughout the day, 7,282 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 6,500 shares. The stock ranged in price between $2.20-$2.39 after having opened the day at $2.29 as compared to the previous trading day's close of $2.39.

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 $19.3 million and is part of the transportation industry. Shares are down 11.8% 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.

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

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

China Metro-Rural Holdings ( CNR) was another company that pushed the Services sector lower today. China Metro-Rural Holdings was down $0.04 (4.5%) to $0.93 on light volume. Throughout the day, 4,228 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 5,900 shares. The stock ranged in price between $0.91-$0.95 after having opened the day at $0.91 as compared to the previous trading day's close of $0.98.

China Metro-Rural Holdings has a market cap of $68.4 million and is part of the transportation industry. Shares are up 8.7% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates China Metro-Rural Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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

More from Markets

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Deutsche Bank Plans 'Significant' Job Cuts as Q1 Profits Slump

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Samsung Posts Record Q1 But Adds Cautious Voice To Smartphone Demand Forecasts

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Boeing Is Back to Cruising Altitude; GM Gets Assist From Amazon -- ICYMI

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Investors Shouldn't Be Worried About Trump's Trade Tariffs: Ian Bremmer

Aceto's Search for Deal May Be Slowed by DOJ Subpoena

Aceto's Search for Deal May Be Slowed by DOJ Subpoena