3 Stocks Pushing The Services Sector Lower

The Services sector as a whole closed the day up 0.3% versus the S&P 500, which was up 0.3%. Laggards within the Services sector included Liberty Interactive Corp Class B ( LVNTB), down 2.5%, Bowl America ( BWL.A), down 3.0%, Spar Group ( SGRP), down 6.6%, Compx International ( CIX), down 2.6% and Beasley Broadcast Group ( BBGI), down 3.0%.

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

Beasley Broadcast Group ( BBGI) is one of the companies that pushed the Services sector lower today. Beasley Broadcast Group was down $0.15 (3.0%) to $4.85 on light volume. Throughout the day, 159 shares of Beasley Broadcast Group exchanged hands as compared to its average daily volume of 1,900 shares. The stock ranged in price between $4.85-$4.85 after having opened the day at $4.85 as compared to the previous trading day's close of $5.00.

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 $31.0 million and is part of the diversified services industry. Shares are down 2.2% year-to-date as of the close of trading on Friday.

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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 6.6%. 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 greatly underperformed compared to 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, Compx International ( CIX) was down $0.29 (2.6%) to $10.78 on light volume. Throughout the day, 215 shares of Compx International exchanged hands as compared to its average daily volume of 700 shares. The stock ranged in price between $10.78-$10.78 after having opened the day at $10.78 as compared to the previous trading day's close of $11.07.

CompX International Inc. engages in the manufacture and sale of security products and recreational marine components primarily in North America. The company operates through two segments, Security Products and Marine Components. Compx International has a market cap of $27.4 million and is part of the diversified services industry. Shares are down 8.4% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Compx International as a buy. 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, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on CIX go as follows:

  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 8.2%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CIX 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 5.13, which clearly demonstrates the ability to cover short-term cash needs.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • COMPX INTERNATIONAL INC has improved earnings per share by 11.8% 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 two years. During the past fiscal year, COMPX INTERNATIONAL INC increased its bottom line by earning $0.70 versus $0.49 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Services & Supplies industry. The net income increased by 12.8% when compared to the same quarter one year prior, going from $2.14 million to $2.41 million.

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

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Spar Group ( SGRP) was another company that pushed the Services sector lower today. Spar Group was down $0.09 (6.6%) to $1.28 on heavy volume. Throughout the day, 9,908 shares of Spar Group exchanged hands as compared to its average daily volume of 4,300 shares. The stock ranged in price between $1.26-$1.32 after having opened the day at $1.30 as compared to the previous trading day's close of $1.37.

SPAR Group Inc., together with its subsidiaries, provides merchandising and marketing services worldwide. Spar Group has a market cap of $27.8 million and is part of the diversified services industry. Shares are down 2.1% year-to-date as of the close of trading on Friday.

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.

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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 6.6%. 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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