3 Leisure Stocks Moving The Industry Upward

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model

One out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 13 points (0.1%) at 15,338 as of Friday, May 31, 2013, 12:50 PM ET. The NYSE advances/declines ratio sits at 963 issues advancing vs. 1,995 declining with 88 unchanged.

The Leisure industry currently sits up 0.1% versus the S&P 500, which is down 0.09.

TheStreet Ratings group would like to highlight 3 stocks pushing the industry higher today:

3. Krispy Kreme Doughnuts ( KKD) is one of the companies pushing the Leisure industry higher today. As of noon trading, Krispy Kreme Doughnuts is up $2.36 (16.55) to $16.62 on heavy volume Thus far, 5.9 million shares of Krispy Kreme Doughnuts exchanged hands as compared to its average daily volume of 1.3 million shares. The stock has ranged in price between $15.35-$16.92 after having opened the day at $15.36 as compared to the previous trading day's close of $14.26.

Krispy Kreme Doughnuts, Inc., together with its subsidiaries, operates as a branded retailer and wholesaler of doughnuts, beverages, and treats and packaged sweets worldwide. It owns and franchises Krispy Kreme stores. Krispy Kreme Doughnuts has a market cap of $885.3 million and is part of the services sector. The company has a P/E ratio of 45.1, above the S&P 500 P/E ratio of 17.7. Shares are up 52.0% year to date as of the close of trading on Thursday. Currently there are 3 analysts that rate Krispy Kreme Doughnuts a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Krispy Kreme Doughnuts as a buy. 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, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Krispy Kreme Doughnuts Ratings Report now.

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2. As of noon trading, Melco Crown Entertainment ( MPEL) is up $0.41 (1.75) to $23.80 on light volume Thus far, 1.3 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 4.1 million shares. The stock has ranged in price between $23.51-$23.84 after having opened the day at $23.67 as compared to the previous trading day's close of $23.39.

Melco Crown Entertainment Limited, through its subsidiaries, develops, owns, and operates casino gaming and entertainment resort facilities in Macau. Melco Crown Entertainment has a market cap of $13.0 billion and is part of the services sector. The company has a P/E ratio of 30.9, above the S&P 500 P/E ratio of 17.7. Shares are up 39.7% year to date as of the close of trading on Thursday. Currently there are 10 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and 3 rate it a hold.

TheStreet Ratings rates Melco Crown Entertainment as a buy. 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 solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income. Get the full Melco Crown Entertainment Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

1. As of noon trading, Starbucks Corporation ( SBUX) is up $0.28 (0.44) to $63.75 on light volume Thus far, 1.7 million shares of Starbucks Corporation exchanged hands as compared to its average daily volume of 4.7 million shares. The stock has ranged in price between $63.11-$64.34 after having opened the day at $63.21 as compared to the previous trading day's close of $63.47.

Starbucks Corporation operates as a roaster, marketer, and retailer of specialty coffee worldwide. As of September 30, 2012, the company operated 9,405 company-operated stores and 8,661 licensed stores. Starbucks Corporation has a market cap of $47.6 billion and is part of the services sector. The company has a P/E ratio of 32.3, above the S&P 500 P/E ratio of 17.7. Shares are up 18.6% year to date as of the close of trading on Thursday. Currently there are 15 analysts that rate Starbucks Corporation a buy, no analysts rate it a sell, and 7 rate it a hold.

TheStreet Ratings rates Starbucks Corporation as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Get the full Starbucks Corporation Ratings Report now.

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

If you are interested in one of these 3 stocks, ETFs may be of interest. Investors who are bullish on the leisure industry could consider PowerShares Dynamic Leisure&Entert ( PEJ) while those bearish on the leisure industry could consider ProShares Ultra Sht Consumer Services ( SCC).

A reminder about TheStreet Ratings group: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

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