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 up 0.8% versus the S&P 500, which was up 0.1%. Laggards within the Services sector included General Employment ( JOB), down 7.0%, Radio One ( ROIA), down 7.5%, SmartPros ( SPRO), down 3.7%, Spar Group ( SGRP), down 4.3% and Tiger Media ( IDI), down 1.9%.

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

Tiger Media ( IDI) is one of the companies that pushed the Services sector lower today. Tiger Media was down $0.01 (1.9%) to $0.72 on light volume. Throughout the day, 9,110 shares of Tiger Media exchanged hands as compared to its average daily volume of 39,800 shares. The stock ranged in price between $0.68-$0.73 after having opened the day at $0.73 as compared to the previous trading day's close of $0.73.

Tiger Media, Inc., a multi-platform media company, provides advertising services in the out-of-home advertising industry in the People's Republic of China. Tiger Media has a market cap of $26.3 million and is part of the computer software & services industry. Shares are down 51.7% year-to-date as of the close of trading on Wednesday.

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 Tiger Media as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IDI 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 Media industry. The net income has significantly decreased by 46.5% when compared to the same quarter one year ago, falling from -$0.54 million to -$0.79 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Media industry and the overall market, TIGER MEDIA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for TIGER MEDIA INC is currently extremely low, coming in at 13.99%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -89.30% is significantly below that of the industry average.
  • TIGER MEDIA INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, TIGER MEDIA INC reported poor results of -$0.12 versus -$0.03 in the prior year.
  • IDI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 46.67%, which is also worse than the performance of the S&P 500 Index. 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.

You can view the full analysis from the report here: Tiger Media 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, Spar Group ( SGRP) was down $0.07 (4.3%) to $1.54 on light volume. Throughout the day, 12,736 shares of Spar Group exchanged hands as compared to its average daily volume of 17,200 shares. The stock ranged in price between $1.52-$1.68 after having opened the day at $1.61 as compared to the previous trading day's close of $1.61.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $30.4 million and is part of the computer software & services industry. Shares are down 18.7% year-to-date as of the close of trading on Wednesday.

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 Spar Group 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 notable return on equity. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • SGRP's revenue growth has slightly outpaced the industry average of 8.9%. Since the same quarter one year prior, revenues rose by 12.8%. 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, 0.39, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, SGRP has a quick ratio of 2.18, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP INC reported significant earnings per share improvement 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. During the past fiscal year, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 in the prior year.
  • The gross profit margin for SPAR GROUP INC is rather low; currently it is at 24.90%. Regardless of SGRP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SGRP's net profit margin of 1.86% is significantly lower than the industry average.
  • Net operating cash flow has significantly decreased to -$1.92 million or 197.21% 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: Spar 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.

Radio One ( ROIA) was another company that pushed the Services sector lower today. Radio One was down $0.14 (7.5%) to $1.72 on light volume. Throughout the day, 611 shares of Radio One exchanged hands as compared to its average daily volume of 3,700 shares. The stock ranged in price between $1.71-$1.72 after having opened the day at $1.71 as compared to the previous trading day's close of $1.86.

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 $3.9 million and is part of the computer software & services industry. Shares are down 51.0% year-to-date as of the close of trading on Wednesday.

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

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

Highlights from TheStreet Ratings analysis on ROIA go as follows:

  • The debt-to-equity ratio is very high at 25.19 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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.
  • ROIA's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 42.28%, which is also worse than the performance of the S&P 500 Index. 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.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Media industry average. The net income increased by 0.0% when compared to the same quarter one year prior, going from -$13.22 million to -$13.22 million.
  • ROIA, with its decline in revenue, underperformed when compared the industry average of 8.9%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.

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

More from Markets

Stocks Extend Gains Amid Progress on U.S.-China Trade

Stocks Extend Gains Amid Progress on U.S.-China Trade

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

Micron Spikes After $10 Billion Buyback Plan Caps Bullish Q3 Earnings Forecast

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

J.C. Penney Shares Fall as CEO Marvin Ellison Resigns to Head Lowe's

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

U.S. Crude Oil Hits Fresh 3-Year Highs as Gas Prices March to $3 a Gallon

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know

Oil Prices, China Tariffs, Micron and Kohl's - 5 Things You Must Know