3 Stocks Raising The Specialty Retail 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 115 points (0.7%) at 16,699 as of Monday, May 12, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,399 issues advancing vs. 608 declining with 135 unchanged.The Specialty Retail industry as a whole closed the day up 2.1% versus the S&P 500, which was up 1.0%. Top gainers within the Specialty Retail industry included Dover Saddlery (DOVR), up 1.7%, DGSE Companies (DGSE), up 5.6%, China Auto Logistics (CALI), up 5.7%, Mecox Lane (MCOX), up 3.5% and Trans World Entertainment (TWMC), up 5.7%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:Mecox Lane (MCOX) is one of the companies that pushed the Specialty Retail industry higher today. Mecox Lane was up $0.12 (3.5%) to $3.60 on light volume. Throughout the day, 11,335 shares of Mecox Lane exchanged hands as compared to its average daily volume of 29,200 shares. The stock ranged in a price between $3.49-$3.60 after having opened the day at $3.51 as compared to the previous trading day's close of $3.48. Mecox Lane Limited designs and sells apparel, accessories, and home and healthcare products through its online platform and stores in the People's Republic of China. Mecox Lane has a market cap of $43.7 million and is part of the services sector. Shares are down 4.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Mecox Lane a buy, no analysts rate it a sell, and none rate 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 Mecox Lane 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 and generally disappointing historical performance in the stock itself.Highlights from TheStreet Ratings analysis on MCOX go as follows:
- MECOX LANE LTD's earnings per share declined by 50.0% in the most recent quarter compared to 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, MECOX LANE LTD reported poor results of -$2.20 versus -$1.95 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 Internet & Catalog Retail industry. The net income has significantly decreased by 55.5% when compared to the same quarter one year ago, falling from -$7.22 million to -$11.22 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 Internet & Catalog Retail industry and the overall market, MECOX LANE LTD's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, MCOX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
- The revenue fell significantly faster than the industry average of 4.9%. Since the same quarter one year prior, revenues fell by 41.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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