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.

All three major indices are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 186.59 points (-1.1%) at 17,427 as of Wednesday, Jan. 14, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,236 issues advancing vs. 1,880 declining with 117 unchanged.

The Diversified Services industry as a whole closed the day down 0.7% versus the S&P 500, which was down 0.6%. Top gainers within the Diversified Services industry included Cambium Learning Group ( ABCD), up 4.6%, AeroCentury ( ACY), up 5.6%, Taomee Holdings ( TAOM), up 4.7%, ATA ( ATAI), up 3.5% and Industrial Services of America ( IDSA), up 4.2%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

Taomee Holdings ( TAOM) is one of the companies that pushed the Diversified Services industry higher today. Taomee Holdings was up $0.16 (4.7%) to $3.58 on average volume. Throughout the day, 22,849 shares of Taomee Holdings exchanged hands as compared to its average daily volume of 15,500 shares. The stock ranged in a price between $3.42-$3.70 after having opened the day at $3.43 as compared to the previous trading day's close of $3.42.

Taomee Holdings Limited operates as a children's entertainment and media company in the People's Republic of China. It operates through two segments, Online Business and Offline Business. Taomee Holdings has a market cap of $119.3 million and is part of the services sector. Shares are down 0.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Taomee Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

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TheStreet Ratings rates Taomee Holdings as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on TAOM go as follows:

  • TAOM 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. Along with this, the company maintains a quick ratio of 4.18, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for TAOMEE HOLDINGS LTD -ADR is currently very high, coming in at 74.54%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TAOM's net profit margin of 8.37% significantly trails the industry average.
  • The revenue fell significantly faster than the industry average of 26.9%. Since the same quarter one year prior, revenues fell by 15.9%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • TAOMEE HOLDINGS LTD -ADR's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, TAOMEE HOLDINGS LTD -ADR reported lower earnings of $0.15 versus $0.23 in the prior year. For the next year, the market is expecting a contraction of 133.3% in earnings (-$0.05 versus $0.15).
  • 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 Software industry. The net income has significantly decreased by 51.5% when compared to the same quarter one year ago, falling from $2.40 million to $1.17 million.

You can view the full analysis from the report here: Taomee 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, AeroCentury ( ACY) was up $0.42 (5.6%) to $8.03 on light volume. Throughout the day, 1,870 shares of AeroCentury exchanged hands as compared to its average daily volume of 6,100 shares. The stock ranged in a price between $7.77-$8.04 after having opened the day at $7.77 as compared to the previous trading day's close of $7.61.

AeroCentury Corp. acquires and invests in used regional aircraft and aircraft engines for lease to regional carriers worldwide. As of February 28, 2014, the company owned 9 Bombardier Dash-8-300, 3 Bombardier CRJ-700, 7 Fokker 100, 3 Bombardier Dash-8-Q400, and 1 Bombardier CRJ-705 aircraft. AeroCentury has a market cap of $12.1 million and is part of the services sector. Shares are down 10.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates AeroCentury a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates AeroCentury as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on ACY 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 Trading Companies & Distributors industry. The net income has significantly decreased by 305.1% when compared to the same quarter one year ago, falling from $4.02 million to -$8.25 million.
  • The debt-to-equity ratio is very high at 3.15 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 Trading Companies & Distributors industry and the overall market, AEROCENTURY CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AEROCENTURY CORP is currently extremely low, coming in at 6.25%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -171.27% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.55 million or 185.47% 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: AeroCentury 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.

Cambium Learning Group ( ABCD) was another company that pushed the Diversified Services industry higher today. Cambium Learning Group was up $0.08 (4.6%) to $1.83 on average volume. Throughout the day, 14,273 shares of Cambium Learning Group exchanged hands as compared to its average daily volume of 17,200 shares. The stock ranged in a price between $1.77-$1.84 after having opened the day at $1.77 as compared to the previous trading day's close of $1.75.

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 $79.5 million and is part of the services sector. Shares are up 6.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Cambium Learning Group a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Cambium Learning Group as a sell. The area that we feel has been the company's primary weakness has been its generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on ABCD go as follows:

  • This stock's share value has moved by only 16.75% over the past year. 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.
  • ABCD, with its decline in revenue, slightly underperformed the industry average of 5.2%. 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 -2.93%.
  • 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.

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.