3 Specialty Retail Stocks Pushing Industry Growth
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 12 points (0.1%) at 16,545 as of Thursday, May 22, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,121 issues advancing vs. 844 declining with 178 unchanged.The Specialty Retail industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.3%. Top gainers within the Specialty Retail industry included China Auto Logistics (CALI), up 1.9%, Charles & Colvard (CTHR), up 1.6%, CSS Industries (CSS), up 5.0%, Cencosud (CNCO), up 1.5% and America's Car-Mart (CRMT), up 2.1%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:CSS Industries (CSS) is one of the companies that pushed the Specialty Retail industry higher today. CSS Industries was up $1.17 (5.0%) to $24.51 on light volume. Throughout the day, 9,869 shares of CSS Industries exchanged hands as compared to its average daily volume of 16,800 shares. The stock ranged in a price between $23.21-$24.68 after having opened the day at $23.21 as compared to the previous trading day's close of $23.34. CSS Industries, Inc., a consumer products company, engages in the design, manufacture, procurement, distribution, and sale of various occasion and seasonal social expression products primarily to mass market retailers primarily in the United States and Canada. CSS Industries has a market cap of $214.2 million and is part of the services sector. Shares are down 18.6% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate CSS Industries 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 CSS Industries as a buy. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.Highlights from TheStreet Ratings analysis on CSS go as follows:
- CSS 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 3.10, which clearly demonstrates the ability to cover short-term cash needs.
- 35.82% is the gross profit margin for CSS INDUSTRIES INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.35% is above that of the industry average.
- CSS, with its decline in revenue, underperformed when compared the industry average of 19.0%. Since the same quarter one year prior, revenues slightly dropped by 8.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing 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. In comparison to the other companies in the Household Durables industry and the overall market, CSS INDUSTRIES INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV