3 Stocks Pushing The Diversified 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 Diversified Services industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.1%. Laggards within the Diversified Services industry included Birner Dental Management Services ( BDMS), down 3.2%, Command Security ( MOC), down 5.8%, Lime Energy ( LIME), down 2.5%, Mastech Holdings ( MHH), down 3.3% and Corporate Resource Services ( CRRS), down 1.6%.

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

Corporate Resource Services ( CRRS) is one of the companies that pushed the Diversified Services industry lower today. Corporate Resource Services was down $0.02 (1.6%) to $1.21 on light volume. Throughout the day, 23,854 shares of Corporate Resource Services exchanged hands as compared to its average daily volume of 106,700 shares. The stock ranged in price between $1.21-$1.27 after having opened the day at $1.24 as compared to the previous trading day's close of $1.23.

Corporate Resource Services has a market cap of $205.4 million and is part of the technology sector. Shares are down 53.2% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Corporate Resource Services a buy, no analysts rate it a sell, and 1 rates it a hold.

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At the close, Lime Energy ( LIME) was down $0.08 (2.5%) to $3.19 on average volume. Throughout the day, 25,671 shares of Lime Energy exchanged hands as compared to its average daily volume of 19,600 shares. The stock ranged in price between $3.18-$3.43 after having opened the day at $3.40 as compared to the previous trading day's close of $3.27.

Lime Energy Co. is engaged in designing and implementing energy efficiency programs for utilities in the United States. Lime Energy has a market cap of $12.7 million and is part of the technology sector. Shares are up 13.2% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Lime Energy as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.

Highlights from TheStreet Ratings analysis on LIME go as follows:

  • Net operating cash flow has significantly decreased to -$1.21 million or 392.27% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, LIME has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • The gross profit margin for LIME ENERGY CO is currently lower than what is desirable, coming in at 33.82%. Regardless of LIME's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -1.27% trails the industry average.
  • 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. Compared to other companies in the Electrical Equipment industry and the overall market, LIME ENERGY CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • LIME has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Despite the fact that LIME's debt-to-equity ratio is low, the quick ratio, which is currently 0.55, displays a potential problem in covering short-term cash needs.

You can view the full analysis from the report here: Lime Energy Ratings Report

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Command Security ( MOC) was another company that pushed the Diversified Services industry lower today. Command Security was down $0.11 (5.8%) to $1.85 on light volume. Throughout the day, 5,760 shares of Command Security exchanged hands as compared to its average daily volume of 26,500 shares. The stock ranged in price between $1.85-$2.00 after having opened the day at $1.86 as compared to the previous trading day's close of $1.96.

Command Security Corporation provides uniformed security officers and aviation security services to commercial, financial, industrial, aviation, and governmental customers in the United States. The company operates through Security and Aviation Safeguards divisions. Command Security has a market cap of $18.9 million and is part of the technology sector. Shares are down 4.7% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Command Security as a hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

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Highlights from TheStreet Ratings analysis on MOC go as follows:

  • COMMAND SECURITY CORP has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, COMMAND SECURITY CORP increased its bottom line by earning $0.12 versus $0.04 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 1993.9% when compared to the same quarter one year prior, rising from $0.03 million to $0.69 million.
  • MOC, with its decline in revenue, slightly underperformed the industry average of 8.3%. Since the same quarter one year prior, revenues slightly dropped by 0.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • This stock's share value has moved by only 11.74% over the past year. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • The gross profit margin for COMMAND SECURITY CORP is currently extremely low, coming in at 14.71%. Regardless of MOC's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 1.83% trails the industry average.

You can view the full analysis from the report here: Command Security Ratings Report

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