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 closed the day down 2.7% versus the S&P 500, which was down 0.9%. Laggards within the Retail industry included

Alon Blue Square Israel

(

BSI

), down 1.7%,

Acorn International

(

ATV

), down 2.8%,

Appliance Recycling Centers Of America

(

ARCI

), down 2.4%,

U S Auto Parts Network

(

PRTS

), down 3.9% and

Gordman's Stores

(

GMAN

), down 5.9%.

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

U S Auto Parts Network

(

PRTS

) is one of the companies that pushed the Retail industry lower today. U S Auto Parts Network was down $0.09 (3.9%) to $2.20 on light volume. Throughout the day, 16,779 shares of U S Auto Parts Network exchanged hands as compared to its average daily volume of 44,100 shares. The stock ranged in price between $2.16-$2.30 after having opened the day at $2.20 as compared to the previous trading day's close of $2.29.

U.S. Auto Parts Network, Inc., together with its subsidiaries, operates as an online retailer of automotive aftermarket parts and accessories primarily in the United States, Canada, and the Philippines. It operates in two segments, Base USAP and AutoMD. U S Auto Parts Network has a market cap of $74.8 million and is part of the services sector. Shares are down 2.1% year-to-date as of the close of trading on Wednesday. Currently there are 2 analysts who rate U S Auto Parts Network a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

U S Auto Parts Network

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on PRTS 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 78.3% when compared to the same quarter one year ago, falling from -$1.40 million to -$2.49 million.
  • The debt-to-equity ratio of 1.11 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.12, which clearly demonstrates the inability to cover short-term cash needs.
  • The gross profit margin for US AUTO PARTS NETWORK INC is currently lower than what is desirable, coming in at 27.09%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.66% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$10.70 million or 274.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of US AUTO PARTS NETWORK INC has not done very well: it is down 8.68% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

You can view the full analysis from the report here:

U S Auto Parts Network 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,

Appliance Recycling Centers Of America

(

ARCI

) was down $0.07 (2.4%) to $2.80 on heavy volume. Throughout the day, 257,506 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 19,800 shares. The stock ranged in price between $2.80-$2.91 after having opened the day at $2.91 as compared to the previous trading day's close of $2.87.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $16.8 million and is part of the services sector. Shares are up 4.4% year-to-date as of the close of trading on Wednesday.

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

Appliance Recycling Centers Of America

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and poor profit margins.

Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 0.3%. 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.
  • The debt-to-equity ratio is somewhat low, currently at 0.81, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.75 is somewhat weak and could be cause for future problems.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 26.86%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.65% trails that of the industry average.
  • 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 51.0% when compared to the same quarter one year ago, falling from $1.13 million to $0.56 million.

You can view the full analysis from the report here:

Appliance Recycling Centers Of America 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.

Acorn International

(

ATV

) was another company that pushed the Retail industry lower today. Acorn International was down $0.04 (2.8%) to $1.41 on light volume. Throughout the day, 3,400 shares of Acorn International exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in price between $1.35-$1.41 after having opened the day at $1.38 as compared to the previous trading day's close of $1.45.

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells a portfolio of proprietary-branded products; and third parties products. The company operates two sales platforms, including integrated direct sales and a nationwide distribution network. Acorn International has a market cap of $39.2 million and is part of the services sector. Shares are down 13.7% year-to-date as of the close of trading on Wednesday.

TheStreet Ratings rates

Acorn International

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

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 ATV go as follows:

  • 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, ACORN INTERNATIONAL INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, ATV has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • ACORN INTERNATIONAL INC -ADR has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, ACORN INTERNATIONAL INC -ADR reported poor results of -$1.45 versus -$0.59 in the prior year.
  • The revenue fell significantly faster than the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 44.8%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 39.76% is the gross profit margin for ACORN INTERNATIONAL INC -ADR which we consider to be strong. Regardless of ATV's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ATV's net profit margin of -28.10% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here:

Acorn International 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.