3 Stocks Raising The Leisure 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 16 points (0.1%) at 16,738 as of Wednesday, June 4, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,467 issues advancing vs. 1,547 declining with 149 unchanged.

The Leisure industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.2%. Top gainers within the Leisure industry included Chanticleer Holdings ( HOTR), up 4.1%, Rick's Cabaret International ( RICK), up 2.1%, Ignite Restaurant Group ( IRG), up 1.9%, Einstein Noah Restaurant Group ( BAGL), up 2.2% and Empire Resorts ( NYNY), up 7.4%.

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

Einstein Noah Restaurant Group ( BAGL) is one of the companies that pushed the Leisure industry higher today. Einstein Noah Restaurant Group was up $0.32 (2.2%) to $14.90 on heavy volume. Throughout the day, 105,334 shares of Einstein Noah Restaurant Group exchanged hands as compared to its average daily volume of 64,200 shares. The stock ranged in a price between $14.54-$15.00 after having opened the day at $14.58 as compared to the previous trading day's close of $14.58.

Einstein Noah Restaurant Group, Inc., together with its subsidiaries, owns, operates, franchises, and licenses bagel specialty restaurants in the United States. It owns, franchises, or licenses various restaurant concepts primarily under the Einstein Bros. Einstein Noah Restaurant Group has a market cap of $275.5 million and is part of the services sector. Shares are up 0.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Einstein Noah Restaurant Group a buy, no analysts rate it a sell, and 2 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 Einstein Noah Restaurant Group as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels, good cash flow from operations, increase in stock price during the past year and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from TheStreet Ratings analysis on BAGL go as follows:

  • BAGL's revenue growth has slightly outpaced the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 3.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has slightly increased to $1.47 million or 6.81% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -3.26%.
  • 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • EINSTEIN NOAH RESTAURANT GRP's earnings per share declined by 21.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, EINSTEIN NOAH RESTAURANT GRP increased its bottom line by earning $0.82 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.82).

You can view the full analysis from the report here: Einstein Noah Restaurant Group 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, Ignite Restaurant Group ( IRG) was up $0.28 (1.9%) to $15.35 on average volume. Throughout the day, 57,202 shares of Ignite Restaurant Group exchanged hands as compared to its average daily volume of 52,400 shares. The stock ranged in a price between $14.81-$15.35 after having opened the day at $15.05 as compared to the previous trading day's close of $15.07.

Ignite Restaurant Group, Inc., a diversified restaurant company, operates a portfolio of restaurants in the United States. The company operates three restaurants under the Joe's Crab Shack, Brick House Tavern + Tap, and Romano's Macaroni Grill brands. Ignite Restaurant Group has a market cap of $392.4 million and is part of the services sector. Shares are up 20.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ignite Restaurant Group a buy, no analysts rate it a sell, and 3 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 Ignite Restaurant Group as a hold. Among the primary strengths of the company is its robust revenue growth -- not just in the most recent periods but in previous quarters as well. At the same time, however, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on IRG go as follows:

  • IRG's very impressive revenue growth greatly exceeded the industry average of 6.0%. Since the same quarter one year prior, revenues leaped by 81.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • IGNITE RESTAURANT GROUP INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, IGNITE RESTAURANT GROUP INC swung to a loss, reporting -$0.26 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($0.30 versus -$0.26).
  • The share price of IGNITE RESTAURANT GROUP INC has not done very well: it is down 18.43% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when 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.
  • The gross profit margin for IGNITE RESTAURANT GROUP INC is currently extremely low, coming in at 9.84%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.12% is significantly below that of the industry average.
  • Net operating cash flow has decreased to $8.91 million or 13.29% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Ignite Restaurant Group 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.

Rick's Cabaret International ( RICK) was another company that pushed the Leisure industry higher today. Rick's Cabaret International was up $0.22 (2.1%) to $10.63 on light volume. Throughout the day, 35,368 shares of Rick's Cabaret International exchanged hands as compared to its average daily volume of 48,600 shares. The stock ranged in a price between $10.44-$10.69 after having opened the day at $10.45 as compared to the previous trading day's close of $10.41.

Rick's Cabaret International, Inc., through its subsidiaries, owns and operates nightclubs that offer live adult entertainment, restaurant, and bar services primarily for businessmen and professionals in the United States. Rick's Cabaret International has a market cap of $102.1 million and is part of the services sector. Shares are down 10.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Rick's Cabaret International a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Rick's Cabaret International as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, weak operating cash flow and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on RICK go as follows:

  • The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 8.4%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.91, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.35 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, RICKS CABARET INTL INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has declined marginally to $5.83 million or 6.33% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, RICKS CABARET INTL INC has marginally lower results.

You can view the full analysis from the report here: Rick's Cabaret 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.

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

You Should Be Investing in Video Games: LIVE BLOG

You Should Be Investing in Video Games: LIVE BLOG

Video: What to Expect From Microsoft's Earnings Thursday

Video: What to Expect From Microsoft's Earnings Thursday

Dow, S&P 500 End Higher; Nasdaq Flat

Dow, S&P 500 End Higher; Nasdaq Flat

Trump's Trade Spats Damage U.S. Energy Companies, May Help China

Trump's Trade Spats Damage U.S. Energy Companies, May Help China

3 'Strong Buy' Healthcare Stocks Poised to Surge

3 'Strong Buy' Healthcare Stocks Poised to Surge