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The Diversified Services industry as a whole closed the day down 1.0% versus the S&P 500, which was down 1.3%. Laggards within the Diversified Services industry included Spar Group ( SGRP), down 8.2%, RLJ Entertainment ( RLJE), down 3.0%, EnviroStar ( EVI), down 2.1%, Learning Tree International ( LTRE), down 5.2% and VirtualScopics ( VSCP), down 2.2%.

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

Learning Tree International ( LTRE) is one of the companies that pushed the Diversified Services industry lower today. Learning Tree International was down $0.09 (5.2%) to $1.64 on average volume. Throughout the day, 9,650 shares of Learning Tree International exchanged hands as compared to its average daily volume of 12,400 shares. The stock ranged in price between $1.63-$1.70 after having opened the day at $1.70 as compared to the previous trading day's close of $1.73.

Learning Tree International, Inc., together with its subsidiaries, develops, markets, and delivers a library of instructor-led classroom courses for professional development needs of information technology (IT) professionals and managers worldwide. Learning Tree International has a market cap of $25.3 million and is part of the services sector. Shares are down 1.1% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Learning Tree International as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on LTRE 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 257.9% when compared to the same quarter one year ago, falling from $0.73 million to -$1.15 million.
  • Net operating cash flow has significantly decreased to $0.02 million or 98.58% 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 43.13%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 250.00% 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.
  • 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 Diversified Consumer Services industry and the overall market, LEARNING TREE INTL INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 48.71% is the gross profit margin for LEARNING TREE INTL INC which we consider to be strong. Regardless of LTRE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, LTRE's net profit margin of -4.22% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Learning Tree International Ratings Report

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At the close, RLJ Entertainment ( RLJE) was down $0.05 (3.0%) to $1.60 on light volume. Throughout the day, 1,863 shares of RLJ Entertainment exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in price between $1.60-$1.65 after having opened the day at $1.64 as compared to the previous trading day's close of $1.65.

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 $20.7 million and is part of the services sector. Shares are down 22.1% year-to-date as of the close of trading on Thursday.

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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 59.69%, 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

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Spar Group ( SGRP) was another company that pushed the Diversified Services industry lower today. Spar Group was down $0.13 (8.2%) to $1.46 on light volume. Throughout the day, 1,540 shares of Spar Group exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $1.46-$1.58 after having opened the day at $1.58 as compared to the previous trading day's close of $1.59.

SPAR Group Inc., together with its subsidiaries, provides merchandising and other marketing services worldwide. Spar Group has a market cap of $32.7 million and is part of the services sector. Shares are up 13.6% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Spar Group as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including poor profit margins and a generally disappointing performance in the stock itself.

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Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • SGRP's revenue growth has slightly outpaced the industry average of 6.5%. Since the same quarter one year prior, revenues rose by 11.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • SGRP's debt-to-equity ratio is very low at 0.28 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SGRP has a quick ratio of 2.02, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SPAR GROUP INC reported flat earnings per share in the most recent quarter. 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, SPAR GROUP INC increased its bottom line by earning $0.15 versus $0.13 in the prior year.
  • SGRP has underperformed the S&P 500 Index, declining 23.65% from its price level of one year ago. 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 SPAR GROUP INC is rather low; currently it is at 23.56%. Regardless of SGRP's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, SGRP's net profit margin of 1.23% is significantly lower than the industry average.

You can view the full analysis from the report here: Spar Group Ratings Report

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