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 up 0.2% versus the S&P 500, which was unchanged. Laggards within the Retail industry included

QKL Stores

(

QKLS

), down 5.7%,

Gaiam

(

GAIA

), down 3.4%,

China Jo-Jo Drugstores

(

CJJD

), down 3.4%,

Sears Canada

(

SRSC

), down 1.5% and

PC Connection

(

PCCC

), down 2.4%.

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

China Jo-Jo Drugstores

(

CJJD

) is one of the companies that pushed the Retail industry lower today. China Jo-Jo Drugstores was down $0.09 (3.4%) to $2.56 on light volume. Throughout the day, 52,064 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 215,100 shares. The stock ranged in price between $2.55-$2.75 after having opened the day at $2.72 as compared to the previous trading day's close of $2.65.

China Jo-Jo Drugstores, Inc. operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. China Jo-Jo Drugstores has a market cap of $38.6 million and is part of the services sector. Shares are down 11.4% year-to-date as of the close of trading on Tuesday.

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

China Jo-Jo Drugstores

as a

sell

. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, poor profit margins and generally high debt management risk.

Highlights from TheStreet Ratings analysis on CJJD 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 Food & Staples Retailing industry and the overall market, CHINA JO-JO DRUGSTORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA JO-JO DRUGSTORES INC is rather low; currently it is at 16.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.20% trails that of the industry average.
  • CJJD's debt-to-equity ratio of 0.76 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Despite the fact that CJJD's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.60 is low and demonstrates weak liquidity.
  • CHINA JO-JO DRUGSTORES INC reported significant earnings per share improvement 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, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 versus -$1.05 in the prior year.
  • Net operating cash flow has increased to $3.65 million or 10.18% when compared to the same quarter last year. Despite an increase in cash flow, CHINA JO-JO DRUGSTORES INC's cash flow growth rate is still lower than the industry average growth rate of 54.45%.

You can view the full analysis from the report here:

China Jo-Jo Drugstores 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,

Gaiam

(

GAIA

) was down $0.25 (3.4%) to $7.06 on light volume. Throughout the day, 12,469 shares of Gaiam exchanged hands as compared to its average daily volume of 29,400 shares. The stock ranged in price between $7.05-$7.35 after having opened the day at $7.33 as compared to the previous trading day's close of $7.31.

Gaiam, Inc., together with its subsidiaries, operates as a lifestyle media company worldwide. It operates in two segments, Business and Direct to Consumer. Gaiam has a market cap of $138.6 million and is part of the services sector. Shares are up 2.0% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Gaiam 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

Gaiam

as a

hold

. The company's strengths can be seen in multiple areas, such as its revenue growth, 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 feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on GAIA go as follows:

  • The revenue growth came in higher than the industry average of 2.5%. Since the same quarter one year prior, revenues rose by 14.2%. 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.
  • GAIA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, GAIA has a quick ratio of 1.57, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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 2621.7% when compared to the same quarter one year ago, falling from $0.12 million to -$3.03 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 Internet & Catalog Retail industry and the overall market, GAIAM INC'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:

Gaiam 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.

QKL Stores

(

QKLS

) was another company that pushed the Retail industry lower today. QKL Stores was down $0.14 (5.7%) to $2.32 on average volume. Throughout the day, 7,823 shares of QKL Stores exchanged hands as compared to its average daily volume of 9,600 shares. The stock ranged in price between $2.26-$2.54 after having opened the day at $2.26 as compared to the previous trading day's close of $2.46.

QKL Stores Inc., together with its subsidiaries, operates a supermarket chain in northeastern China and Inner Mongolia. QKL Stores has a market cap of $3.8 million and is part of the services sector. Shares are up 26.1% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

QKL Stores

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, 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 QKLS 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 Food & Staples Retailing industry. The net income has significantly decreased by 223.9% when compared to the same quarter one year ago, falling from -$1.69 million to -$5.48 million.
  • The debt-to-equity ratio of 1.45 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, QKLS has a quick ratio of 0.52, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Food & Staples Retailing industry and the overall market, QKL STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for QKL STORES INC is rather low; currently it is at 16.80%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -8.96% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$3.29 million or 3.71% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here:

QKL Stores 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.