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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 28.64 points (-0.2%) at 16,839 as of Thursday, June 26, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,444 issues advancing vs. 1,544 declining with 166 unchanged. The Leisure industry as a whole closed the day up 0.2% versus the S&P 500, which was down 0.1%. Top gainers within the Leisure industry included MTR Gaming Group ( MNTG), up 2.0%, Diversified Restaurant Holdings ( BAGR), up 3.0%, Good Times Restaurants ( GTIM), up 1.9%, Monarch Casino & Resort ( MCRI), up 1.5% and Isle of Capri Casinos ( ISLE), up 3.3%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: Monarch Casino & Resort ( MCRI) is one of the companies that pushed the Leisure industry higher today. Monarch Casino & Resort was up $0.23 (1.5%) to $15.51 on light volume. Throughout the day, 14,124 shares of Monarch Casino & Resort exchanged hands as compared to its average daily volume of 35,200 shares. The stock ranged in a price between $14.98-$15.74 after having opened the day at $15.33 as compared to the previous trading day's close of $15.28. Monarch Casino & Resort, Inc., through its subsidiaries, owns and operates the Atlantis Casino Resort Spa, a hotel/casino facility in Reno, Nevada; and the Monarch Casino Black Hawk in Black Hawk, Colorado. Monarch Casino & Resort has a market cap of $248.4 million and is part of the services sector. Shares are down 23.9% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates Monarch Casino & Resort 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 Monarch Casino & Resort as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins 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 MCRI go as follows:
- MCRI's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.71 is somewhat weak and could be cause for future problems.
- The gross profit margin for MONARCH CASINO & RESORT INC is rather high; currently it is at 51.10%. Regardless of MCRI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 7.19% trails the industry average.
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 6.0%. Since the same quarter one year prior, revenues slightly dropped by 0.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, MONARCH CASINO & RESORT INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- MTR GAMING 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MTR GAMING GROUP INC reported poor results of -$0.33 versus -$0.20 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 690.5% when compared to the same quarter one year ago, falling from -$0.79 million to -$6.21 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 Hotels, Restaurants & Leisure industry and the overall market, MTR GAMING GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has decreased to -$11.63 million or 10.54% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, MTR GAMING GROUP INC has marginally lower results.
- The debt-to-equity ratio is very high at 3655.97 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, MNTG has managed to keep a strong quick ratio of 2.01, which demonstrates the ability to cover short-term cash needs.