3 Diversified Services Stocks Pushing The Industry Higher

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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 305 points (1.8%) at 17,666 as of Tuesday, Feb. 3, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,499 issues advancing vs. 614 declining with 98 unchanged.

The Diversified Services industry as a whole closed the day up 2.1% versus the S&P 500, which was up 1.4%. Top gainers within the Diversified Services industry included RLJ Entertainment ( RLJE), up 2.3%, National American University Holdings ( NAUH), up 1.7%, Corinthian Colleges ( COCO), up 2.1%, Cambium Learning Group ( ABCD), up 1.5% and Swisher Hygiene ( SWSH), up 11.8%.

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

Corinthian Colleges ( COCO) is one of the companies that pushed the Diversified Services industry higher today. Corinthian Colleges was up $0.00 (2.1%) to $0.06 on light volume. Throughout the day, 248,240 shares of Corinthian Colleges exchanged hands as compared to its average daily volume of 1,080,100 shares. The stock ranged in a price between $0.06-$0.06 after having opened the day at $0.06 as compared to the previous trading day's close of $0.06.

Corinthian Colleges, Inc. operates as a post-secondary education company. The company offers various diploma programs, as well as associate, bachelor's, and master's degrees. Corinthian Colleges has a market cap of $5.3 million and is part of the technology sector. Shares are down 3.6% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Corinthian Colleges a buy, 1 analyst rates it a sell, and 1 rates 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 Corinthian Colleges as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on COCO 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 Diversified Consumer Services industry. The net income has significantly decreased by 7703.7% when compared to the same quarter one year ago, falling from -$1.02 million to -$79.60 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 Diversified Consumer Services industry and the overall market, CORINTHIAN COLLEGES 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 -$19.40 million or 172.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 95.98%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 1780.00% compared to the year-earlier quarter. 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.
  • CORINTHIAN COLLEGES 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, CORINTHIAN COLLEGES INC increased its bottom line by earning $0.25 versus $0.21 in the prior year. For the next year, the market is expecting a contraction of 60.0% in earnings ($0.10 versus $0.25).

You can view the full analysis from the report here: Corinthian Colleges 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, National American University Holdings ( NAUH) was up $0.05 (1.7%) to $3.06 on average volume. Throughout the day, 15,481 shares of National American University Holdings exchanged hands as compared to its average daily volume of 19,900 shares. The stock ranged in a price between $2.97-$3.15 after having opened the day at $2.97 as compared to the previous trading day's close of $3.01.

National American University Holdings, Inc. engages in the ownership and operation of National American University (NAU) that provides postsecondary education services primarily for working adults and other non-traditional students in the United States. National American University Holdings has a market cap of $80.6 million and is part of the technology sector. Shares are up 11.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates National American University Holdings a buy, no analysts rate it a sell, and 1 rates 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 National American University 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, attractive valuation levels and expanding profit margins. 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 NAUH go as follows:

  • NAUH's debt-to-equity ratio is very low at 0.23 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.98, which clearly demonstrates the ability to cover short-term cash needs.
  • NATIONAL AMERN UNIV HLDG INC reported significant earnings per share improvement in the most recent quarter compared to 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, NATIONAL AMERN UNIV HLDG INC reported lower earnings of $0.13 versus $0.21 in the prior year. This year, the market expects an improvement in earnings ($0.24 versus $0.13).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Diversified Consumer Services industry and the overall market, NATIONAL AMERN UNIV HLDG INC's return on equity is below that of both the industry average and the S&P 500.
  • NAUH has underperformed the S&P 500 Index, declining 10.64% from its price level of one year ago. 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: National American University 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.

RLJ Entertainment ( RLJE) was another company that pushed the Diversified Services industry higher today. RLJ Entertainment was up $0.04 (2.3%) to $1.99 on average volume. Throughout the day, 8,143 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 8,000 shares. The stock ranged in a price between $1.94-$2.12 after having opened the day at $2.12 as compared to the previous trading day's close of $1.95.

RLJ Entertainment, Inc., an entertainment company, acquires content rights in British episodic mystery and drama, urban programming, and full-length motion pictures. It operates through three segments: Intellectual Property Licensing, Wholesale, and Direct-to-Consumer. RLJ Entertainment has a market cap of $25.9 million and is part of the technology sector. Shares are down 2.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate RLJ Entertainment a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates RLJ Entertainment 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, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RLJE go as follows:

  • Although RLJE's debt-to-equity ratio of 2.15 is very high, it is currently less than that of the industry average.
  • 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. Compared to other companies in the Media industry and the overall market, RLJ ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RLJ ENTERTAINMENT INC is rather low; currently it is at 24.17%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -21.00% is significantly below that of the industry average.
  • RLJ ENTERTAINMENT INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, RLJ ENTERTAINMENT INC reported poor results of -$2.30 versus -$0.49 in the prior year.
  • RLJE'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 60.00%, 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.

You can view the full analysis from the report here: RLJ Entertainment 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.

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