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 Leisure industry as a whole closed the day down 1.3% versus the S&P 500, which was down 1.6%. Laggards within the Leisure industry included

Bowl America

(

BWL.A

), down 2.1%,

Chanticleer Holdings

(

HOTR

), down 6.2%,

Canterbury Park

(

CPHC

), down 1.8%,

Diversified Restaurant Holdings

(

BAGR

), down 2.2% and

Asia Entertainment & Resources

(

IKGH

), down 3.4%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Royal Caribbean Cruises

(

RCL

) is one of the companies that pushed the Leisure industry lower today. Royal Caribbean Cruises was down $2.47 (4.3%) to $55.35 on heavy volume. Throughout the day, 6,367,634 shares of Royal Caribbean Cruises exchanged hands as compared to its average daily volume of 1,711,400 shares. The stock ranged in price between $54.49-$57.90 after having opened the day at $57.84 as compared to the previous trading day's close of $57.82.

Royal Caribbean Cruises, Ltd. operates as a cruise company worldwide. It owns six cruise brands comprising Royal Caribbean International, Celebrity Cruises, Pullmantur, Azamara Club Cruises, CDF Croisieres de France, and TUI Cruises. Royal Caribbean Cruises has a market cap of $12.9 billion and is part of the services sector. Shares are up 21.9% year-to-date as of the close of trading on Friday. Currently there are 10 analysts who rate Royal Caribbean Cruises a buy, no analysts rate it a sell, and 3 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

Royal Caribbean Cruises

as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and reasonable valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on RCL go as follows:

  • The revenue growth came in higher than the industry average of 6.5%. Since the same quarter one year prior, revenues slightly increased by 5.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 463.63% and other important driving factors, this stock has surged by 59.35% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • ROYAL CARIBBEAN CRUISES LTD reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. During the past fiscal year, ROYAL CARIBBEAN CRUISES LTD increased its bottom line by earning $2.14 versus $0.07 in the prior year. This year, the market expects an improvement in earnings ($3.50 versus $2.14).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 456.3% when compared to the same quarter one year prior, rising from $24.75 million to $137.67 million.

You can view the full analysis from the report here:

Royal Caribbean Cruises Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

At the close,

Asia Entertainment & Resources

(

IKGH

) was down $0.07 (3.4%) to $1.99 on average volume. Throughout the day, 66,149 shares of Asia Entertainment & Resources exchanged hands as compared to its average daily volume of 62,200 shares. The stock ranged in price between $1.95-$2.06 after having opened the day at $2.05 as compared to the previous trading day's close of $2.06.

Iao Kun Group Holding Company Limited, through its subsidiaries, promotes VIP gaming rooms in Macau, the People's Republic of China. Its VIP gaming rooms are located in City of Dreams Hotel & Casino, Sands Cotai Central, StarWorld Hotel and Casino, Galaxy Macau Resort, and Le Royal Arc Casino. Asia Entertainment & Resources has a market cap of $117.8 million and is part of the services sector. Shares are down 33.7% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Asia Entertainment & Resources 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

Asia Entertainment & Resources

as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on IKGH go as follows:

  • IKGH's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, IKGH has a quick ratio of 2.14, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Net operating cash flow has significantly increased by 805.91% to $3.68 million when compared to the same quarter last year. In addition, IAO KUN GROUP HOLDING CO LTD has also vastly surpassed the industry average cash flow growth rate of -8.39%.
  • IKGH, with its decline in revenue, underperformed when compared the industry average of 6.5%. Since the same quarter one year prior, revenues fell by 21.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 1803.9% when compared to the same quarter one year ago, falling from -$2.98 million to -$56.72 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 Hotels, Restaurants & Leisure industry and the overall market, IAO KUN GROUP HOLDING CO LTD's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here:

Asia Entertainment & Resources Ratings Report

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Diversified Restaurant Holdings

(

BAGR

) was another company that pushed the Leisure industry lower today. Diversified Restaurant Holdings was down $0.11 (2.2%) to $4.89 on light volume. Throughout the day, 11,564 shares of Diversified Restaurant Holdings exchanged hands as compared to its average daily volume of 17,800 shares. The stock ranged in price between $4.86-$5.00 after having opened the day at $5.00 as compared to the previous trading day's close of $5.00.

Diversified Restaurant Holdings has a market cap of $128.6 million and is part of the services sector. Shares are up 3.1% year-to-date as of the close of trading on Friday. Currently there are 2 analysts who rate Diversified Restaurant Holdings 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.