3 Stocks Raising The Specialty Retail Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 115 points (0.7%) at 16,699 as of Monday, May 12, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,399 issues advancing vs. 608 declining with 135 unchanged.

The Specialty Retail industry as a whole closed the day up 2.1% versus the S&P 500, which was up 1.0%. Top gainers within the Specialty Retail industry included Dover Saddlery ( DOVR), up 1.7%, DGSE Companies ( DGSE), up 5.6%, China Auto Logistics ( CALI), up 5.7%, Mecox Lane ( MCOX), up 3.5% and Trans World Entertainment ( TWMC), up 5.7%.

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

Mecox Lane ( MCOX) is one of the companies that pushed the Specialty Retail industry higher today. Mecox Lane was up $0.12 (3.5%) to $3.60 on light volume. Throughout the day, 11,335 shares of Mecox Lane exchanged hands as compared to its average daily volume of 29,200 shares. The stock ranged in a price between $3.49-$3.60 after having opened the day at $3.51 as compared to the previous trading day's close of $3.48.

Mecox Lane Limited designs and sells apparel, accessories, and home and healthcare products through its online platform and stores in the People's Republic of China. Mecox Lane has a market cap of $43.7 million and is part of the services sector. Shares are down 4.7% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Mecox Lane 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 Mecox Lane 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on MCOX go as follows:

  • MECOX LANE LTD's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MECOX LANE LTD reported poor results of -$2.20 versus -$1.95 in the prior year.
  • 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 55.5% when compared to the same quarter one year ago, falling from -$7.22 million to -$11.22 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, MECOX LANE LTD's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, MCOX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • The revenue fell significantly faster than the industry average of 4.9%. Since the same quarter one year prior, revenues fell by 41.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

You can view the full analysis from the report here: Mecox Lane 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, China Auto Logistics ( CALI) was up $0.11 (5.7%) to $2.03 on average volume. Throughout the day, 44,513 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 48,600 shares. The stock ranged in a price between $1.98-$2.14 after having opened the day at $1.98 as compared to the previous trading day's close of $1.92.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. It operates in five segments: Sales of Automobiles, Financing Services, Web-Based Advertising, Automobile Value Added Services, and Auto Mall Management Services. China Auto Logistics has a market cap of $7.5 million and is part of the services sector. Shares are down 47.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Auto Logistics 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 China Auto Logistics as a hold. The company's strengths can be seen in multiple areas, such as its increase in net income, reasonable valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, generally higher debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the Specialty Retail industry average, but is less than that of the S&P 500. The net income increased by 15.8% when compared to the same quarter one year prior, going from -$2.18 million to -$1.84 million.
  • CHINA AUTO LOGISTICS INC has improved earnings per share by 18.6% 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 AUTO LOGISTICS INC reported lower earnings of $0.16 versus $0.67 in the prior year.
  • CALI'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 35.07%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Despite the heavy decline in its share price, this stock is still more expensive (when compared to its current earnings) than most other companies in its industry.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 1.10%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.58% trails that of the industry average.

You can view the full analysis from the report here: China Auto Logistics 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.

Dover Saddlery ( DOVR) was another company that pushed the Specialty Retail industry higher today. Dover Saddlery was up $0.09 (1.7%) to $5.50 on heavy volume. Throughout the day, 15,651 shares of Dover Saddlery exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in a price between $5.41-$5.50 after having opened the day at $5.41 as compared to the previous trading day's close of $5.41.

Dover Saddlery, Inc. operates as a specialty retailer and omni-channel marketer of equestrian products in the United States. The company offers a selection of products required to own, ride, train, and compete with a horse. Dover Saddlery has a market cap of $29.6 million and is part of the services sector. Shares are up 3.5% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Dover Saddlery a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Dover Saddlery as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk.

Highlights from TheStreet Ratings analysis on DOVR go as follows:

  • The revenue growth came in higher than the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 9.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • Compared to its closing price of one year ago, DOVR's share price has jumped by 38.15%, exceeding the performance of the broader market during that same time frame. Although DOVR had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
  • 37.72% is the gross profit margin for DOVER SADDLERY INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.75% trails the industry average.
  • DOVR's debt-to-equity ratio of 0.99 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. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.12 is very low and demonstrates very weak liquidity.
  • DOVER SADDLERY INC reported flat earnings per share in the most recent quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, DOVER SADDLERY INC reported lower earnings of $0.27 versus $0.31 in the prior year.

You can view the full analysis from the report here: Dover Saddlery 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.

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.

More from Markets

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Week Ahead: Trade Fears and Stress Tests Signal More Volatility To Come

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Trump Takes Aim at Auto Imports; Markets End Mixed -- ICYMI

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

Video: What Oprah's Content Partnership With Apple Means for the Rest of Tech

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

REPLAY: Jim Cramer on the Markets, Oil, Starbucks, Tesla, Okta and Red Hat

Flashback Friday: The Market Movers

Flashback Friday: The Market Movers