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

Lentuo International

(

LAS

), down 2.7%,

Rush

(

RUSHB

), down 2.7%,

Charles & Colvard

(

CTHR

), down 5.0%,

HHGregg

(

HGG

), down 7.2% and

XO Group

(

XOXO

), down 2.2%.

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

Charles & Colvard

(

CTHR

) is one of the companies that pushed the Specialty Retail industry lower today. Charles & Colvard was down $0.09 (5.0%) to $1.70 on light volume. Throughout the day, 44,309 shares of Charles & Colvard exchanged hands as compared to its average daily volume of 108,400 shares. The stock ranged in price between $1.60-$1.78 after having opened the day at $1.71 as compared to the previous trading day's close of $1.79.

Charles & Colvard, Ltd. manufactures, markets, and distributes moissanite jewels and finished jewelry featuring moissanite worldwide. Charles & Colvard has a market cap of $34.8 million and is part of the basic materials sector. Shares are down 7.1% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Charles & Colvard a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates

Charles & Colvard

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 generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CTHR go as follows:

  • CHARLES & COLVARD LTD has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHARLES & COLVARD LTD swung to a loss, reporting -$0.05 versus $0.22 in the prior year. For the next year, the market is expecting a contraction of 960.0% in earnings (-$0.53 versus -$0.05).
  • 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 Textiles, Apparel & Luxury Goods industry. The net income has significantly decreased by 153.2% when compared to the same quarter one year ago, falling from -$1.21 million to -$3.07 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 Textiles, Apparel & Luxury Goods industry and the overall market, CHARLES & COLVARD LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHARLES & COLVARD LTD is currently lower than what is desirable, coming in at 33.75%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -67.80% is significantly below that of the industry average.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 65.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 150.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

You can view the full analysis from the report here:

Charles & Colvard 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,

Rush

(

RUSHB

) was down $0.71 (2.7%) to $25.20 on heavy volume. Throughout the day, 11,373 shares of Rush exchanged hands as compared to its average daily volume of 7,300 shares. The stock ranged in price between $25.06-$25.84 after having opened the day at $25.34 as compared to the previous trading day's close of $25.91.

Rush Enterprises, Inc., through its subsidiaries, operates as an integrated retailer of commercial vehicles and related services in the United States. The company owns and operates a network of commercial vehicle dealerships under the Rush Truck Centers name. Rush has a market cap of $254.1 million and is part of the basic materials sector. Shares are down 8.0% 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

Rush

as a

hold

. The company's strengths can be seen in multiple areas, such as its robust revenue growth, attractive valuation levels and compelling growth in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on RUSHB go as follows:

  • The revenue growth came in higher than the industry average of 7.4%. Since the same quarter one year prior, revenues rose by 35.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Trading Companies & Distributors industry. The net income increased by 54.7% when compared to the same quarter one year prior, rising from $15.18 million to $23.48 million.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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 gross profit margin for RUSH ENTERPRISES INC is rather low; currently it is at 16.01%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.89% trails that of the industry average.
  • Currently the debt-to-equity ratio of 1.78 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Along with this, the company manages to maintain a quick ratio of 0.27, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here:

Rush 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.

Lentuo International

(

LAS

) was another company that pushed the Specialty Retail industry lower today. Lentuo International was down $0.02 (2.7%) to $0.73 on average volume. Throughout the day, 271,708 shares of Lentuo International exchanged hands as compared to its average daily volume of 225,800 shares. The stock ranged in price between $0.70-$0.81 after having opened the day at $0.81 as compared to the previous trading day's close of $0.75.

Lentuo International Inc. operates automobile franchise dealerships in the People's Republic of China. Lentuo International has a market cap of $24.8 million and is part of the basic materials sector. Shares are down 13.8% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates

Lentuo International

as a

hold

. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, notable return on equity and increase in net income. However, as a counter to these strengths, we also find weaknesses including generally higher debt management risk, a generally disappointing performance in the stock itself and poor profit margins.

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 LAS go as follows:

  • LENTUO INTERNATIONAL -ADR reported flat earnings per share in the most recent quarter. 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, LENTUO INTERNATIONAL -ADR turned its bottom line around by earning $0.12 versus -$0.03 in the prior year.
  • LAS, with its decline in revenue, underperformed when compared the industry average of 9.9%. Since the same quarter one year prior, revenues fell by 13.1%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • LAS's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 75.00%, which is also worse than the performance of the S&P 500 Index. 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.
  • The debt-to-equity ratio of 1.25 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 0.26, which clearly demonstrates the inability to cover short-term cash needs.

You can view the full analysis from the report here:

Lentuo 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.