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 0.1% versus the S&P 500, which was up 0.1%. Laggards within the Services sector included Point 360 ( PTSX), down 13.3%, China Metro-Rural Holdings ( CNR), down 3.3%, Radio One ( ROIA), down 2.2%, Crystal Rock Holdings ( CRVP), down 5.1% and Coast Distribution System ( CRV), down 2.3%.

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

AerCap Holdings ( AER) is one of the companies that pushed the Services sector lower today. AerCap Holdings was down $0.74 (1.6%) to $44.48 on light volume. Throughout the day, 494,152 shares of AerCap Holdings exchanged hands as compared to its average daily volume of 1,437,700 shares. The stock ranged in price between $44.44-$45.36 after having opened the day at $45.20 as compared to the previous trading day's close of $45.22.

AerCap Holdings N.V., through its subsidiaries, is engaged in leasing, financing, selling, and managing commercial aircraft and engines primarily in the United States and Russia. AerCap Holdings has a market cap of $9.4 billion and is part of the transportation industry. Shares are up 17.9% year-to-date as of the close of trading on Tuesday. Currently there are 5 analysts who rate AerCap Holdings a buy, 1 analyst rates 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 AerCap Holdings as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on AER go as follows:

  • AER's very impressive revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues leaped by 365.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 117.80% and other important driving factors, this stock has surged by 109.68% over the past year, outperforming the rise in the S&P 500 Index during the same period. 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.
  • The gross profit margin for AERCAP HOLDINGS NV is currently very high, coming in at 98.15%. Regardless of AER's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AER's net profit margin of 27.89% significantly outperformed against the industry.
  • The debt-to-equity ratio is very high at 4.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • 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. In comparison to the other companies in the Trading Companies & Distributors industry and the overall market, AERCAP HOLDINGS NV's return on equity is significantly below that of the industry average and is below that of the S&P 500.

You can view the full analysis from the report here: AerCap 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, Radio One ( ROIA) was down $0.04 (2.2%) to $1.74 on light volume. Throughout the day, 354 shares of Radio One exchanged hands as compared to its average daily volume of 3,900 shares. The stock ranged in price between $1.72-$1.75 after having opened the day at $1.75 as compared to the previous trading day's close of $1.78.

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 $4.0 million and is part of the transportation industry. Shares are down 53.2% year-to-date as of the close of trading on Tuesday.

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 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.

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 48.97%, 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 9.0%. 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.

China Metro-Rural Holdings ( CNR) was another company that pushed the Services sector lower today. China Metro-Rural Holdings was down $0.03 (3.3%) to $0.88 on light volume. Throughout the day, 2,832 shares of China Metro-Rural Holdings exchanged hands as compared to its average daily volume of 6,900 shares. The stock ranged in price between $0.88-$0.91 after having opened the day at $0.91 as compared to the previous trading day's close of $0.91.

China Metro-Rural Holdings has a market cap of $66.2 million and is part of the transportation industry. Shares are unchanged year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates China Metro-Rural Holdings 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.

More from Markets

Amazon Profit Blast Puts Shares on Record Path, Challenging Apple as World's Bi

Amazon Profit Blast Puts Shares on Record Path, Challenging Apple as World's Bi

UK GDP Hits Slowest Pace in Five Years as Cold Snap Hammers Construction

UK GDP Hits Slowest Pace in Five Years as Cold Snap Hammers Construction

Global Stocks Rise on Tech Resurgence; Dollar Past 3-Month High Ahead of Q1 GDP

Global Stocks Rise on Tech Resurgence; Dollar Past 3-Month High Ahead of Q1 GDP

Daimler Shares Rise After Record Mercedes-Benz Sales, Bullish Profit Outlook

Daimler Shares Rise After Record Mercedes-Benz Sales, Bullish Profit Outlook

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI

AMD Rises Above the Competition; Loan Losses Mount for Big Banks -- ICYMI