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 0.8% versus the S&P 500, which was down 0.2%. Laggards within the Diversified Services industry included China Yida ( CNYD), down 6.2%, Cambium Learning Group ( ABCD), down 3.0%, Industrial Services of America ( IDSA), down 2.5%, DLH Holdings ( DLHC), down 6.0% and Amrep ( AXR), down 1.6%.

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

Industrial Services of America ( IDSA) is one of the companies that pushed the Diversified Services industry lower today. Industrial Services of America was down $0.11 (2.5%) to $4.36 on average volume. Throughout the day, 10,832 shares of Industrial Services of America exchanged hands as compared to its average daily volume of 8,700 shares. The stock ranged in price between $4.17-$4.40 after having opened the day at $4.36 as compared to the previous trading day's close of $4.47.

Industrial Services of America, Inc. operates as a recycler of stainless steel, ferrous, and non-ferrous scrap. The company operates in two segments, Recycling and Waste Services. Industrial Services of America has a market cap of $39.1 million and is part of the services sector. Shares are up 54.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Industrial Services of America as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on IDSA go as follows:

  • 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 Commercial Services & Supplies industry and the overall market, INDUSTRIAL SERVICES AMER INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.33 million or 368.57% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for INDUSTRIAL SERVICES AMER INC is currently extremely low, coming in at 6.84%. Regardless of IDSA'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 0.47% trails the industry average.
  • INDUSTRIAL SERVICES AMER INC reported significant earnings per share improvement in the most recent quarter compared to 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, INDUSTRIAL SERVICES AMER INC reported poor results of -$1.96 versus -$0.96 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 107.4% when compared to the same quarter one year prior, rising from -$2.19 million to $0.16 million.

You can view the full analysis from the report here: Industrial Services of America Ratings Report

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At the close, Cambium Learning Group ( ABCD) was down $0.05 (3.0%) to $1.60 on average volume. Throughout the day, 22,453 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 19,900 shares. The stock ranged in price between $1.60-$1.62 after having opened the day at $1.61 as compared to the previous trading day's close of $1.65.

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 $75.9 million and is part of the services sector. Shares are up 1.8% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Cambium Learning Group as a sell. The area that we feel has been the company's primary weakness has been its declining revenues.

Highlights from TheStreet Ratings analysis on ABCD go as follows:

  • ABCD, with its decline in revenue, underperformed when compared the industry average of 5.8%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The gross profit margin for CAMBIUM LEARNING GROUP INC is currently very high, coming in at 73.16%. 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 2.41% trails the industry average.
  • Net operating cash flow has significantly increased by 59.82% to $19.64 million when compared to the same quarter last year. In addition, CAMBIUM LEARNING GROUP INC has also vastly surpassed the industry average cash flow growth rate of 0.84%.
  • This stock has managed to rise its share value by 12.24% over the past twelve months. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • CAMBIUM LEARNING GROUP INC 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, CAMBIUM LEARNING GROUP INC continued to lose money by earning -$0.31 versus -$2.72 in the prior year.

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.

China Yida ( CNYD) was another company that pushed the Diversified Services industry lower today. China Yida was down $0.18 (6.2%) to $2.72 on light volume. Throughout the day, 900 shares of China Yida exchanged hands as compared to its average daily volume of 3,500 shares. The stock ranged in price between $2.70-$2.72 after having opened the day at $2.70 as compared to the previous trading day's close of $2.90.

China Yida Holding Co., together with its subsidiaries, is engaged in the tourism and advertisement businesses in the People's Republic of China. The company operates through two segments, Advertisement and Tourism. China Yida has a market cap of $12.9 million and is part of the services sector. Shares are up 14.0% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates China Yida as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on CNYD go as follows:

  • CHINA YIDA HOLDING CO 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA YIDA HOLDING CO swung to a loss, reporting -$4.24 versus $0.06 in the prior year.
  • 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 249.6% when compared to the same quarter one year ago, falling from -$3.63 million to -$12.68 million.
  • 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, CHINA YIDA HOLDING CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$2.52 million or 19.92% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The share price of CHINA YIDA HOLDING CO has not done very well: it is down 9.33% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.

You can view the full analysis from the report here: China Yida 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.

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