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 up 0.2% versus the S&P 500, which was up 0.5%. Laggards within the Financial Services industry included Rand Capital ( RAND), down 1.9%, First Trust High Income ETF ( FTHI), down 2.3%, First Marblehead ( FMD), down 6.4%, China Ceramics ( CCCL), down 8.2% and Harris & Harris Group ( TINY), down 2.4%.

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

Harris & Harris Group ( TINY) is one of the companies that pushed the Financial Services industry lower today. Harris & Harris Group was down $0.07 (2.4%) to $2.85 on light volume. Throughout the day, 37,515 shares of Harris & Harris Group exchanged hands as compared to its average daily volume of 101,100 shares. The stock ranged in price between $2.83-$2.91 after having opened the day at $2.91 as compared to the previous trading day's close of $2.92.

Harris & Harris Group, Inc. is a venture capital firm specializing in early stage investments. It is a BDC. Harris & Harris Group has a market cap of $90.0 million and is part of the financial sector. Shares are down 2.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Harris & Harris Group as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, good cash flow from operations and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on TINY go as follows:

  • HARRIS & HARRIS GROUP has improved earnings per share by 7.7% 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. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HARRIS & HARRIS GROUP continued to lose money by earning -$0.26 versus -$0.64 in the prior year. This year, the market expects an improvement in earnings ($0.15 versus -$0.26).
  • Net operating cash flow has significantly increased by 1470.33% to $18.84 million when compared to the same quarter last year. In addition, HARRIS & HARRIS GROUP has also vastly surpassed the industry average cash flow growth rate of 247.72%.
  • The revenue fell significantly faster than the industry average of 5.1%. Since the same quarter one year prior, revenues fell by 29.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Capital Markets industry average, but is greater than that of the S&P 500. The net income increased by 5.4% when compared to the same quarter one year prior, going from $4.11 million to $4.33 million.
  • TINY has underperformed the S&P 500 Index, declining 6.17% 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.

You can view the full analysis from the report here: Harris & Harris Group Ratings Report

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At the close, China Ceramics ( CCCL) was down $0.08 (8.2%) to $0.84 on light volume. Throughout the day, 24,053 shares of China Ceramics exchanged hands as compared to its average daily volume of 85,600 shares. The stock ranged in price between $0.81-$0.91 after having opened the day at $0.91 as compared to the previous trading day's close of $0.92.

China Ceramics has a market cap of $19.4 million and is part of the financial sector. Shares are down 61.1% year-to-date as of the close of trading on Tuesday.

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

First Marblehead ( FMD) was another company that pushed the Financial Services industry lower today. First Marblehead was down $0.15 (6.4%) to $2.19 on average volume. Throughout the day, 31,308 shares of First Marblehead exchanged hands as compared to its average daily volume of 31,800 shares. The stock ranged in price between $2.11-$2.37 after having opened the day at $2.29 as compared to the previous trading day's close of $2.34.

First Marblehead has a market cap of $27.5 million and is part of the financial sector. Shares are down 68.3% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate First Marblehead a buy, no analysts rate it a sell, and 1 rates 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.

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