3 Stocks Boosting The Diversified Services Industry Higher

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 traded up today The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 18 points (0.1%) at 17,652 as of Monday, Nov. 17, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,424 issues advancing vs. 1,602 declining with 148 unchanged.

The Diversified Services industry as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Top gainers within the Diversified Services industry included Cambium Learning Group ( ABCD), up 1.7%, NV5 Holdings ( NVEE), up 13.9%, Management Network Group ( TMNG), up 2.1%, RMG Networks ( RMGN), up 4.9% and LoJack ( LOJN), up 2.0%.

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

Management Network Group ( TMNG) is one of the companies that pushed the Diversified Services industry higher today. Management Network Group was up $0.09 (2.1%) to $4.39 on average volume. Throughout the day, 10,990 shares of Management Network Group exchanged hands as compared to its average daily volume of 14,100 shares. The stock ranged in a price between $4.30-$4.45 after having opened the day at $4.30 as compared to the previous trading day's close of $4.30.

Management Network Group has a market cap of $37.5 million and is part of the financial sector. Shares are up 56.4% year-to-date as of the close of trading on Friday.

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At the close, NV5 Holdings ( NVEE) was up $1.46 (13.9%) to $11.95 on heavy volume. Throughout the day, 267,302 shares of NV5 Holdings exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in a price between $10.60-$12.40 after having opened the day at $10.95 as compared to the previous trading day's close of $10.49.

NV5 Holdings, Inc. provides professional and technical engineering, and consulting solutions to public and private sectors. NV5 Holdings has a market cap of $53.2 million and is part of the financial sector. Shares are up 28.9% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates NV5 Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates NV5 Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust 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 we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on NVEE go as follows:

  • NVEE's very impressive revenue growth greatly exceeded the industry average of 9.2%. Since the same quarter one year prior, revenues leaped by 70.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Although NVEE's debt-to-equity ratio of 0.27 is very low, it is currently higher than that of the industry average. To add to this, NVEE has a quick ratio of 1.96, which demonstrates the ability of the company to cover short-term liquidity needs.
  • When compared to other companies in the Construction & Engineering industry and the overall market, NV5 HOLDINGS INC's return on equity is below that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$2.85 million or 323.91% 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: NV5 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.

Cambium Learning Group ( ABCD) was another company that pushed the Diversified Services industry higher today. Cambium Learning Group was up $0.03 (1.7%) to $1.79 on light volume. Throughout the day, 2,173 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 23,300 shares. The stock ranged in a price between $1.74-$1.89 after having opened the day at $1.74 as compared to the previous trading day's close of $1.76.

Cambium Learning Group, Inc. operates as an educational solutions and services company in the United States. It operates in four segments: Voyager Sopris Learning (VSL), Learning A-Z, ExploreLearning, and Kurzweil/IntelliTools. Cambium Learning Group has a market cap of $78.6 million and is part of the financial sector. Shares are up 6.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Cambium Learning Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cambium Learning Group 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 ABCD 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 Diversified Consumer Services industry. The net income has significantly decreased by 398.8% when compared to the same quarter one year ago, falling from $0.43 million to -$1.29 million.
  • Net operating cash flow has significantly decreased to $0.37 million or 98.65% when compared to the same quarter last year. Despite a decrease in cash flow CAMBIUM LEARNING GROUP INC is still fairing well by exceeding its industry average cash flow growth rate of -110.93%.
  • ABCD, with its decline in revenue, underperformed when compared the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 15.3%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • CAMBIUM LEARNING GROUP 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, CAMBIUM LEARNING GROUP INC continued to lose money by earning -$0.31 versus -$2.72 in the prior year.
  • The gross profit margin for CAMBIUM LEARNING GROUP INC is currently very high, coming in at 72.60%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -3.55% is in-line with the industry average.

You can view the full analysis from the report here: Cambium Learning Group 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.

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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