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.

The Services sector as a whole closed the day down 0.3% versus the S&P 500, which was up 0.3%. Laggards within the Services sector included Alon Blue Square Israel ( BSI), down 5.5%, Spar Group ( SGRP), down 4.5%, Globus Maritime ( GLBS), down 16.3%, Discovery Communications ( DISCB), down 5.9% and Taitron Components ( TAIT), down 1.8%.

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

Discovery Communications ( DISCB) is one of the companies that pushed the Services sector lower today. Discovery Communications was down $1.95 (5.9%) to $31.33 on average volume. Throughout the day, 150 shares of Discovery Communications exchanged hands as compared to its average daily volume of 200 shares. The stock ranged in price between $31.33-$31.33 after having opened the day at $31.33 as compared to the previous trading day's close of $33.28.

Discovery Communications, Inc. operates as a media company. The company operates through U.S. Networks; International Networks; and Education and Other segments. Discovery Communications has a market cap of $215.8 million and is part of the media industry. Shares are down 10.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Discovery Communications a buy, no analysts rate it a sell, and 1 rates it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Discovery Communications as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on DISCB go as follows:

  • DISCB's revenue growth has slightly outpaced the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 8.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Media industry and the overall market, DISCOVERY COMMUNICATIONS INC's return on equity exceeds that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 8.7% when compared to the same quarter one year prior, going from $230.00 million to $250.00 million.
  • The gross profit margin for DISCOVERY COMMUNICATIONS INC is currently very high, coming in at 89.46%. Regardless of DISCB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DISCB's net profit margin of 16.26% compares favorably to the industry average.

You can view the full analysis from the report here: Discovery Communications Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, Globus Maritime ( GLBS) was down $0.22 (16.3%) to $1.13 on heavy volume. Throughout the day, 38,935 shares of Globus Maritime exchanged hands as compared to its average daily volume of 4,900 shares. The stock ranged in price between $1.13-$1.36 after having opened the day at $1.35 as compared to the previous trading day's close of $1.35.

Globus Maritime Limited, an integrated dry bulk shipping company, provides marine transportation services worldwide. It owns, operates, and manages a fleet of dry bulk vessels that transport iron ore, coal, grain, steel products, cement, alumina, and other dry bulk cargoes. Globus Maritime has a market cap of $13.8 million and is part of the media industry. Shares are down 43.8% year-to-date as of the close of trading on Tuesday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Globus Maritime 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.

Highlights from TheStreet Ratings analysis on GLBS go as follows:

  • GLOBUS MARITIME LTD 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, GLOBUS MARITIME LTD reported lower earnings of $0.29 versus $0.52 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 Marine industry. The net income has significantly decreased by 405.3% when compared to the same quarter one year ago, falling from $1.08 million to -$3.30 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 Marine industry and the overall market, GLOBUS MARITIME LTD'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 $0.32 million or 88.78% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, GLOBUS MARITIME LTD has marginally lower results.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 55.00%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 409.09% 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.

You can view the full analysis from the report here: Globus Maritime Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Spar Group ( SGRP) was another company that pushed the Services sector lower today. Spar Group was down $0.06 (4.5%) to $1.28 on heavy volume. Throughout the day, 12,375 shares of Spar Group exchanged hands as compared to its average daily volume of 4,500 shares. The stock ranged in price between $1.26-$1.30 after having opened the day at $1.30 as compared to the previous trading day's close of $1.34.

SPAR Group Inc., together with its subsidiaries, provides merchandising and marketing services worldwide. Spar Group has a market cap of $27.0 million and is part of the media industry. Shares are down 4.3% year-to-date as of the close of trading on Tuesday.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Highlights from TheStreet Ratings analysis on SGRP go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 79.9% when compared to the same quarter one year prior, rising from -$0.37 million to -$0.07 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 6.7%. Since the same quarter one year prior, revenues slightly increased by 4.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SPAR GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. Stable Earnings per share over the past year indicate the company has sound management over its earnings and share float. During the past fiscal year, SPAR GROUP INC's EPS of $0.15 remained unchanged from the prior years' EPS of $0.15.
  • The gross profit margin for SPAR GROUP INC is rather low; currently it is at 23.62%. 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 -0.25% significantly underperformed when compared to the industry average.
  • Net operating cash flow has decreased to $1.44 million or 41.66% 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: Spar Group Ratings Report

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Dow Tumbles as Trump Calls Off North Korea Summit

Dow Tumbles as Trump Calls Off North Korea Summit

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Jim Cramer: Does Saudi Arabia Think Oil Prices Are Too High?

Stocks Could Easily Crater Into Memorial Day Weekend

Stocks Could Easily Crater Into Memorial Day Weekend

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Video: Here Is How Real Estate Investment Trusts Can Boost Your Portfolio

Celgene Shares Rise on Plans to Increase Stock Buybacks

Celgene Shares Rise on Plans to Increase Stock Buybacks