Wendy's Co (WEN): Today's Featured Leisure Winner

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.

Wendy's ( WEN) pushed the Leisure industry higher today making it today's featured leisure winner. The industry as a whole closed the day down 1.1%. By the end of trading, Wendy's rose $0.54 (6.4%) to $8.98 on heavy volume. Throughout the day, 40,478,609 shares of Wendy's exchanged hands as compared to its average daily volume of 6,516,800 shares. The stock ranged in a price between $8.91-$9.27 after having opened the day at $8.94 as compared to the previous trading day's close of $8.44. Other companies within the Leisure industry that increased today were: Country Style Cooking Restaurant Chain ( CCSC), up 7.9%, Multimedia Games ( MGAM), up 5.8%, 500.com Ltd ADR ( WBAI), up 4.7% and AFC ( AFCE), up 2.2%.

The Wendy's Company, through its subsidiaries, owns and franchises Wendy's restaurant system in North America and internationally. It engages in operating, developing, and franchising a system of distinctive quick-service restaurants. Wendy's has a market cap of $3.3 billion and is part of the services sector. The company has a P/E ratio of 84.0, above the S&P 500 P/E ratio of 17.7. Shares are down 3.2% year to date as of the close of trading on Friday. Currently there are 4 analysts that rate Wendy's a buy, 2 analysts rate it a sell, and 9 rate it a hold.

TheStreet Ratings rates Wendy's 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, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company shows low profit margins.

On the negative front, Town Sports International Holdings ( CLUB), down 6.6%, Noodles & Co Class A ( NDLS), down 5.3%, Diversified Restaurant Holdings ( BAGR), down 5.2% and Scientific Games Corporation Class A ( SGMS), down 5.0% , were all laggards within the leisure industry with Starbucks Corporation ( SBUX) being today's leisure industry laggard.

For investors not wanting singular stock exposure, 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).

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

More from Markets

NYSE Suspends Trading for Some Shares of Amazon, Alphabet

NYSE Suspends Trading for Some Shares of Amazon, Alphabet

Stocks Slide Amid a Rise in Bond Yields, Strong Earnings

Stocks Slide Amid a Rise in Bond Yields, Strong Earnings

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Video: Jim Cramer Reveals Why He's Cautious on Stocks

Jim Cramer on Earnings: All Stories Aren't Equal

Jim Cramer on Earnings: All Stories Aren't Equal

4 Stocks Making Important Moves Wednesday

4 Stocks Making Important Moves Wednesday