3 Stocks Pushing The Retail Industry Lower
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.The Retail industry as a whole was unchanged today versus the S&P 500, which was unchanged. Laggards within the Retail industry included dELiA*s (DLIA), down 3.5%, U S Auto Parts Network (PRTS), down 1.9%, Body Central (BODY), down 23.2%, PC Connection (PCCC), down 2.5% and bebe stores (BEBE), down 3.5%.TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:Body Central (BODY) is one of the companies that pushed the Retail industry lower today. Body Central was down $0.23 (23.2%) to $0.77 on heavy volume. Throughout the day, 1,685,022 shares of Body Central exchanged hands as compared to its average daily volume of 678,500 shares. The stock ranged in price between $0.71-$0.87 after having opened the day at $0.82 as compared to the previous trading day's close of $1.00. Body Central Corp. operates as a specialty retailer of young women's apparel and accessories in the South, Southwest, Mid-Atlantic, and Midwest regions of the United States. Body Central has a market cap of $16.8 million and is part of the services sector. Shares are down 74.6% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Body Central 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 Body Central as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.Highlights from TheStreet Ratings analysis on BODY 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 Specialty Retail industry. The net income has significantly decreased by 443.1% when compared to the same quarter one year ago, falling from $2.70 million to -$9.25 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 Specialty Retail industry and the overall market, BODY CENTRAL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
- The gross profit margin for BODY CENTRAL CORP is currently lower than what is desirable, coming in at 27.05%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -15.48% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to $0.95 million or 81.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 91.96%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 429.41% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
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