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 0.7% versus the S&P 500, which was down 0.7%. Laggards within the Leisure industry included

Dover Downs Gaming & Entertainment

(

DDE

), down 2.2%,

Chanticleer Holdings

(

HOTR

), down 3.5%,

Diversified Restaurant Holdings

(

BAGR

), down 1.9%,

Asia Entertainment & Resources

(

IKGH

), down 3.6% and

Pizza Inn Holdings

(

PZZI

), down 1.5%.

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

Asia Entertainment & Resources

(

IKGH

) is one of the companies that pushed the Leisure industry lower today. Asia Entertainment & Resources was down $0.07 (3.6%) to $1.88 on light volume. Throughout the day, 24,452 shares of Asia Entertainment & Resources exchanged hands as compared to its average daily volume of 68,500 shares. The stock ranged in price between $1.88-$1.99 after having opened the day at $1.96 as compared to the previous trading day's close of $1.95.

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 $112.9 million and is part of the services sector. Shares are down 36.5% year-to-date as of the close of trading on Tuesday. 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 feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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 -23.09%.
  • IKGH, with its decline in revenue, underperformed when compared the industry average of 7.8%. 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.

At the close,

Diversified Restaurant Holdings

(

BAGR

) was down $0.09 (1.9%) to $4.77 on light volume. Throughout the day, 8,600 shares of Diversified Restaurant Holdings exchanged hands as compared to its average daily volume of 18,600 shares. The stock ranged in price between $4.77-$4.94 after having opened the day at $4.86 as compared to the previous trading day's close of $4.86.

Diversified Restaurant Holdings has a market cap of $127.6 million and is part of the services sector. Shares are up 1.9% year-to-date as of the close of trading on Tuesday. 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.

Dover Downs Gaming & Entertainment

(

DDE

) was another company that pushed the Leisure industry lower today. Dover Downs Gaming & Entertainment was down $0.02 (2.2%) to $0.78 on average volume. Throughout the day, 30,780 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 36,300 shares. The stock ranged in price between $0.78-$0.84 after having opened the day at $0.81 as compared to the previous trading day's close of $0.80.

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. Dover Downs Gaming & Entertainment has a market cap of $14.0 million and is part of the services sector. Shares are down 46.0% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Dover Downs Gaming & Entertainment

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

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

Highlights from TheStreet Ratings analysis on DDE go as follows:

  • DOVER DOWNS GAMING & ENTMT's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, DOVER DOWNS GAMING & ENTMT reported lower earnings of $0.01 versus $0.15 in the prior year.
  • 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 66.6% when compared to the same quarter one year ago, falling from $0.49 million to $0.16 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DOVER DOWNS GAMING & ENTMT's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 9.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.35% significantly trails the industry average.
  • Net operating cash flow has decreased to $1.49 million or 27.27% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, DOVER DOWNS GAMING & ENTMT has marginally lower results.

You can view the full analysis from the report here:

Dover Downs Gaming & Entertainment 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.