3 Stocks Moving The Retail Industry Upward
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 67 points (0.4%) at 16,903 as of Friday, June 6, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,246 issues advancing vs. 764 declining with 128 unchanged.The Retail industry as a whole closed the day up 0.9% versus the S&P 500, which was up 0.3%. Top gainers within the Retail industry included China Nepstar Chain Drugstore (NPD), up 2.1%, Cache (CACH), up 5.7%, dELiA*s (DLIA), up 3.1%, Gordman's Stores (GMAN), up 3.6% and Body Central (BODY), up 7.5%.TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:dELiA*s (DLIA) is one of the companies that pushed the Retail industry higher today. dELiA*s was up $0.02 (3.1%) to $0.65 on light volume. Throughout the day, 428,145 shares of dELiA*s exchanged hands as compared to its average daily volume of 691,000 shares. The stock ranged in a price between $0.62-$0.66 after having opened the day at $0.63 as compared to the previous trading day's close of $0.63. dELiA*s, Inc. operates as a multi-channel retail company, primarily marketing to teenage girls in the United States. The company sells various product categories to consumers through its Website, direct mail catalogs, and retail stores. dELiA*s has a market cap of $43.2 million and is part of the services sector. Shares are down 28.4% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate dELiA*s 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 dELiA*s as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.Highlights from TheStreet Ratings analysis on DLIA go as follows:
- 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 26.0% when compared to the same quarter one year ago, falling from -$9.22 million to -$11.61 million.
- The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, DLIA has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
- 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, DELIAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for DELIAS INC is currently lower than what is desirable, coming in at 27.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -44.78% is significantly below that of the industry average.
- Net operating cash flow has declined marginally to -$14.91 million or 4.19% 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.
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