3 Stocks Raising The Leisure 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 16 points (0.1%) at 16,738 as of Wednesday, June 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,467 issues advancing vs. 1,547 declining with 149 unchanged.The Leisure industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.2%. Top gainers within the Leisure industry included Chanticleer Holdings (HOTR), up 4.1%, Rick's Cabaret International (RICK), up 2.1%, Ignite Restaurant Group (IRG), up 1.9%, Einstein Noah Restaurant Group (BAGL), up 2.2% and Empire Resorts (NYNY), up 7.4%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:Einstein Noah Restaurant Group (BAGL) is one of the companies that pushed the Leisure industry higher today. Einstein Noah Restaurant Group was up $0.32 (2.2%) to $14.90 on heavy volume. Throughout the day, 105,334 shares of Einstein Noah Restaurant Group exchanged hands as compared to its average daily volume of 64,200 shares. The stock ranged in a price between $14.54-$15.00 after having opened the day at $14.58 as compared to the previous trading day's close of $14.58. Einstein Noah Restaurant Group, Inc., together with its subsidiaries, owns, operates, franchises, and licenses bagel specialty restaurants in the United States. It owns, franchises, or licenses various restaurant concepts primarily under the Einstein Bros. Einstein Noah Restaurant Group has a market cap of $275.5 million and is part of the services sector. Shares are up 0.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Einstein Noah Restaurant Group a buy, no analysts rate it a sell, and 2 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 Einstein Noah Restaurant Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year 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 BAGL go as follows:
- BAGL's revenue growth has slightly outpaced the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 3.3%. 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.
- Net operating cash flow has slightly increased to $1.47 million or 6.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.26%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- EINSTEIN NOAH RESTAURANT GRP's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EINSTEIN NOAH RESTAURANT GRP increased its bottom line by earning $0.82 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.82).
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