3 Services Stocks Driving The Sector Higher

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 57 points (0.3%) at 17,459 as of Thursday, Aug. 13, 2015, 12:55 PM ET. The NYSE advances/declines ratio sits at 1,426 issues advancing vs. 1,512 declining with 179 unchanged.

The Services sector as a whole closed the day down 0.2% versus the S&P 500, which was up 0.2%. Top gainers within the Services sector included Watsco ( WSO.B), up 3.0%, Onvia ( ONVI), up 2.8%, Wilhelmina International ( WHLM), up 7.2%, Spar Group ( SGRP), up 3.9% and Beasley Broadcast Group ( BBGI), up 7.8%.

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

Beasley Broadcast Group ( BBGI) is one of the companies that pushed the Services sector higher today. Beasley Broadcast Group was up $0.34 (7.8%) to $4.71 on light volume. Throughout the day, 1,386 shares of Beasley Broadcast Group exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in a price between $4.50-$4.71 after having opened the day at $4.50 as compared to the previous trading day's close of $4.37.

Beasley Broadcast Group, Inc., a radio broadcasting company, operates radio stations in the United States. As of March 11, 2015, the company owned and operated 53 stations, including 33 FM stations and 20 AM stations located in 12 large- and mid-size markets in the United States. Beasley Broadcast Group has a market cap of $28.8 million and is part of the retail industry. Shares are down 14.5% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Beasley Broadcast Group a buy, no analysts rate it a sell, and none rate it a hold.

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

Highlights from TheStreet Ratings analysis on BBGI go as follows:

  • BBGI's very impressive revenue growth greatly exceeded the industry average of 5.2%. Since the same quarter one year prior, revenues leaped by 91.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.69, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels.
  • BEASLEY BROADCAST GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, BEASLEY BROADCAST GROUP INC increased its bottom line by earning $0.04 versus $0.02 in the prior year.
  • The gross profit margin for BEASLEY BROADCAST GROUP INC is currently lower than what is desirable, coming in at 30.65%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 9.36% trails that of the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Media industry average. The net income has decreased by 16.2% when compared to the same quarter one year ago, dropping from $3.02 million to $2.53 million.

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

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At the close, Spar Group ( SGRP) was up $0.05 (3.9%) to $1.35 on heavy volume. Throughout the day, 14,223 shares of Spar Group exchanged hands as compared to its average daily volume of 4,200 shares. The stock ranged in a price between $1.35-$1.43 after having opened the day at $1.35 as compared to the previous trading day's close of $1.30.

SPAR Group Inc., together with its subsidiaries, provides merchandising and marketing services worldwide. Spar Group has a market cap of $26.8 million and is part of the retail industry. Shares are down 7.1% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Spar Group a buy, no analysts rate it a sell, and none rate it a hold.

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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.

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 5.2%. 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 the cash generation rate to the industry average, the firm's growth is significantly lower.

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

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Wilhelmina International ( WHLM) was another company that pushed the Services sector higher today. Wilhelmina International was up $0.39 (7.2%) to $5.79 on light volume. Throughout the day, 502 shares of Wilhelmina International exchanged hands as compared to its average daily volume of 900 shares. The stock ranged in a price between $5.79-$5.79 after having opened the day at $5.79 as compared to the previous trading day's close of $5.40.

Wilhelmina International has a market cap of $33.9 million and is part of the retail industry. Shares are down 10.0% year-to-date as of the close of trading on Wednesday.

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.

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