3 Stocks Advancing The Diversified Services Industry

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 13.23 points (-0.1%) at 17,602 as of Wednesday, Nov. 12, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,590 issues advancing vs. 1,414 declining with 161 unchanged.

The Diversified Services industry as a whole closed the day up 0.5% versus the S&P 500, which was down 0.1%. Top gainers within the Diversified Services industry included General Employment ( JOB), up 4.7%, Wilhelmina International ( WHLM), up 4.9%, Bioanalytical Systems ( BASI), up 6.1%, Onvia ( ONVI), up 4.0% and China Yida ( CNYD), up 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

China Yida ( CNYD) is one of the companies that pushed the Diversified Services industry higher today. China Yida was up $0.05 (1.8%) to $2.90 on light volume. Throughout the day, 4,800 shares of China Yida exchanged hands as compared to its average daily volume of 8,800 shares. The stock ranged in a price between $2.82-$3.07 after having opened the day at $2.82 as compared to the previous trading day's close of $2.85.

China Yida Holding, Co., together with its subsidiaries, operates in the tourism and advertisement businesses in the People's Republic of China. The company operates through two segments, Advertisement and Tourism. China Yida has a market cap of $10.8 million and is part of the services sector. Shares are down 4.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate China Yida a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates China Yida as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CNYD go as follows:

  • CHINA YIDA HOLDING CO's earnings per share declined by 26.5% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA YIDA HOLDING CO swung to a loss, reporting -$4.37 versus $0.06 in the prior year.
  • 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 Media industry. The net income has significantly decreased by 61.5% when compared to the same quarter one year ago, falling from -$3.12 million to -$5.03 million.
  • 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, CHINA YIDA HOLDING CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 33.66%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 26.47% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • CNYD, with its decline in revenue, underperformed when compared the industry average of 9.4%. Since the same quarter one year prior, revenues fell by 10.6%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: China Yida 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 up $0.14 (6.1%) to $2.44 on average volume. Throughout the day, 6,200 shares of Bioanalytical Systems exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in a price between $2.30-$2.44 after having opened the day at $2.38 as compared to the previous trading day's close of $2.30.

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 $18.6 million and is part of the services sector. Shares are down 15.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Bioanalytical Systems 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.

TheStreet Ratings rates Bioanalytical Systems as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on BASI go as follows:

  • Compared to its closing price of one year ago, BASI's share price has jumped by 33.52%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • BASI's revenue growth trails the industry average of 25.0%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.62, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.47 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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.

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.

Wilhelmina International ( WHLM) was another company that pushed the Diversified Services industry higher today. Wilhelmina International was up $0.28 (4.9%) to $6.00 on light volume. Throughout the day, 1,572 shares of Wilhelmina International exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in a price between $5.75-$6.00 after having opened the day at $5.80 as compared to the previous trading day's close of $5.72.

Wilhelmina International has a market cap of $35.0 million and is part of the services sector. Shares are down 0.5% year-to-date as of the close of trading on Tuesday.

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.

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