3 Stocks Dragging The Leisure Industry Downward

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

All three major indices are trading up today with the Dow Jones Industrial Average ( ^DJI) trading up 81 points (0.5%) at 15,076 as of Thursday, June 13, 2013, 12:55 PM ET. The NYSE advances/declines ratio sits at 2,136 issues advancing vs. 827 declining with 99 unchanged.

The Leisure industry currently sits up 0.2% versus the S&P 500, which is up 0.6%.

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

3. Melco Crown Entertainment ( MPEL) is one of the companies pushing the Leisure industry lower today. As of noon trading, Melco Crown Entertainment is down $0.46 (-1.9%) to $23.54 on average volume Thus far, 2.7 million shares of Melco Crown Entertainment exchanged hands as compared to its average daily volume of 4.0 million shares. The stock has ranged in price between $23.46-$23.97 after having opened the day at $23.87 as compared to the previous trading day's close of $24.00.

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 $13.2 billion and is part of the services sector. The company has a P/E ratio of 31.4, above the S&P 500 P/E ratio of 17.7. Shares are up 41.6% year to date as of the close of trading on Wednesday. Currently there are 11 analysts that rate Melco Crown Entertainment a buy, no analysts rate it a sell, and 2 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.

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

2. As of noon trading, Starwood Hotels & Resorts Worldwide ( HOT) is down $0.63 (-0.9%) to $65.44 on average volume Thus far, 907,889 shares of Starwood Hotels & Resorts Worldwide exchanged hands as compared to its average daily volume of 2.1 million shares. The stock has ranged in price between $65.36-$66.17 after having opened the day at $66.10 as compared to the previous trading day's close of $66.07.

Starwood Hotels & Resorts Worldwide, Inc. operates as a hotel and leisure company worldwide. The company operates luxury and upscale full-service hotels, resorts, residences, retreats, select-service hotels, and extended stay hotels under the St. Starwood Hotels & Resorts Worldwide has a market cap of $13.0 billion and is part of the services sector. The company has a P/E ratio of 27.1, above the S&P 500 P/E ratio of 17.7. Shares are up 15.2% year to date as of the close of trading on Wednesday. Currently there are 15 analysts that rate Starwood Hotels & Resorts Worldwide a buy, no analysts rate it a sell, and 8 rate it a hold.

TheStreet Ratings rates Starwood Hotels & Resorts Worldwide as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income, reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures and growth in earnings per share. We feel these strengths outweigh the fact that the company shows weak operating cash flow. Get the full Starwood Hotels & Resorts Worldwide Ratings Report now.

STOCKS TO BUY: 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, MGM Resorts International ( MGM) is down $0.16 (-1.1%) to $14.60 on light volume Thus far, 2.9 million shares of MGM Resorts International exchanged hands as compared to its average daily volume of 10.3 million shares. The stock has ranged in price between $14.54-$14.81 after having opened the day at $14.69 as compared to the previous trading day's close of $14.76.

MGM Resorts International, through its wholly owned subsidiaries, owns and/or operates casino resorts. The company operates in two segments, Wholly Owned Domestic Resorts and MGM China. Its resorts offer gaming, hotel, convention, dining, entertainment, retail, and other resort amenities. MGM Resorts International has a market cap of $7.2 billion and is part of the services sector. Shares are up 26.8% year to date as of the close of trading on Wednesday. Currently there are 10 analysts that rate MGM Resorts International a buy, no analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates MGM Resorts International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and generally higher debt management risk. Get the full MGM Resorts International Ratings Report now.

STOCKS TO BUY: 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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