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 0.3% versus the S&P 500, which was up 0.4%. Laggards within the Financial Services industry included RENN Global Entrepreneurs Fund ( RCG), down 3.8%, Nuveen MO Premium Income Muni Fund ( NOM), down 2.1%, China Ceramics ( CCCL), down 3.4%, Marine Petroleum ( MARPS), down 2.1% and Harvest Capital Credit ( HCAP), down 2.5%.

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

Tile Shop Holdings ( TTS) is one of the companies that pushed the Financial Services industry lower today. Tile Shop Holdings was down $0.41 (4.5%) to $8.75 on light volume. Throughout the day, 252,351 shares of Tile Shop Holdings exchanged hands as compared to its average daily volume of 501,300 shares. The stock ranged in price between $8.75-$9.35 after having opened the day at $9.35 as compared to the previous trading day's close of $9.16.

Tile Shop Holdings, Inc. operates as a specialty retailer of manufactured and natural stone tiles, setting and maintenance materials, and related accessories in the United States. Tile Shop Holdings has a market cap of $438.7 million and is part of the services sector. Shares are down 49.3% year-to-date as of the close of trading on Thursday. Currently there are 3 analysts who rate Tile Shop Holdings a buy, no analysts rate it a sell, and 2 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 Tile Shop Holdings as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, unimpressive growth in net income and generally high debt management risk.

Highlights from TheStreet Ratings analysis on TTS go as follows:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 60.87%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 62.50% compared to the year-earlier quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • 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 Specialty Retail industry. The net income has significantly decreased by 62.9% when compared to the same quarter one year ago, falling from $4.05 million to $1.50 million.
  • TTS's debt-to-equity ratio of 0.98 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.37 is very low and demonstrates very weak liquidity.
  • 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. In comparison to the other companies in the Specialty Retail industry and the overall market, TILE SHOP HOLDINGS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • TILE SHOP HOLDINGS 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 reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, TILE SHOP HOLDINGS INC continued to lose money by earning -$0.82 versus -$1.59 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus -$0.82).

You can view the full analysis from the report here: Tile Shop 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.

At the close, Harvest Capital Credit ( HCAP) was down $0.32 (2.5%) to $12.25 on average volume. Throughout the day, 21,655 shares of Harvest Capital Credit exchanged hands as compared to its average daily volume of 19,300 shares. The stock ranged in price between $12.25-$12.62 after having opened the day at $12.58 as compared to the previous trading day's close of $12.57.

Harvest Capital Credit LLC is a business development company providing structured credit to small businesses. Harvest Capital Credit has a market cap of $76.2 million and is part of the services sector. Shares are down 18.3% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate Harvest Capital Credit 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 Harvest Capital Credit as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth and compelling growth in net income. 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 HCAP go as follows:

  • HCAP's very impressive revenue growth greatly exceeded the industry average of 1.2%. Since the same quarter one year prior, revenues leaped by 70.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HARVEST CAPITAL CREDIT CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This year, the market expects an improvement in earnings ($1.38 versus $0.47).
  • The gross profit margin for HARVEST CAPITAL CREDIT CORP is rather high; currently it is at 57.09%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HCAP's net profit margin of 68.01% significantly outperformed against the industry.
  • HCAP has underperformed the S&P 500 Index, declining 18.50% from its price level of one year ago.
  • When compared to other companies in the Capital Markets industry and the overall market, HARVEST CAPITAL CREDIT CORP's return on equity is below that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Harvest Capital Credit 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 Ceramics ( CCCL) was another company that pushed the Financial Services industry lower today. China Ceramics was down $0.03 (3.4%) to $0.85 on light volume. Throughout the day, 22,500 shares of China Ceramics exchanged hands as compared to its average daily volume of 59,800 shares. The stock ranged in price between $0.83-$0.88 after having opened the day at $0.87 as compared to the previous trading day's close of $0.88.

China Ceramics has a market cap of $17.4 million and is part of the services sector. Shares are down 63.9% year-to-date as of the close of trading on Thursday.

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

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Alphabet, Caterpillar, Coca-Cola and Amazon - 5 Things You Must Know

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Apple Suppliers Slide After European, Asian Chipmakers Echo Smartphone Concerns

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

Global Stocks Edge Higher, But Bond Yields, Oil Prices May Test Market Strength

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

SAP Shares Leap After Cloud Business Prompts Full-Year Guidance Upgrade

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI