3 Stocks Pushing The Retail Industry Lower

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.

The Retail industry as a whole closed the day down 1.4% versus the S&P 500, which was down 0.5%. Laggards within the Retail industry included ALCO Stores ( ALCS), down 3.2%, China Jo-Jo Drugstores ( CJJD), down 3.0%, China Nepstar Chain Drugstore ( NPD), down 1.7%, U S Auto Parts Network ( PRTS), down 4.0% and Body Central ( BODY), down 5.2%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

U S Auto Parts Network ( PRTS) is one of the companies that pushed the Retail industry lower today. U S Auto Parts Network was down $0.16 (4.0%) to $3.84 on heavy volume. Throughout the day, 578,593 shares of U S Auto Parts Network exchanged hands as compared to its average daily volume of 121,800 shares. The stock ranged in price between $3.73-$4.09 after having opened the day at $4.00 as compared to the previous trading day's close of $4.00.

U.S. Auto Parts Network, Inc., together with its subsidiaries, operates as an online retailer of automotive aftermarket parts and accessories primarily in the United States, Canada, and the Philippines. It operates in two segments, Base USAP and AutoMD. U S Auto Parts Network has a market cap of $133.7 million and is part of the services sector. Shares are up 61.3% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates U S Auto Parts Network a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates U S Auto Parts Network as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and poor profit margins.

Highlights from TheStreet Ratings analysis on PRTS go as follows:

  • Despite currently having a low debt-to-equity ratio of 0.49, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.18 is very low and demonstrates very weak liquidity.
  • The gross profit margin for US AUTO PARTS NETWORK INC is currently lower than what is desirable, coming in at 30.43%. Regardless of PRTS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 0.29% trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, US AUTO PARTS NETWORK INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly increased by 508.06% to $8.14 million when compared to the same quarter last year. In addition, US AUTO PARTS NETWORK INC has also vastly surpassed the industry average cash flow growth rate of 16.34%.
  • This stock has increased by 224.10% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the future course of this stock, we feel that the risks involved in investing in PRTS do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

You can view the full analysis from the report here: U S Auto Parts Network Ratings Report

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At the close, China Nepstar Chain Drugstore ( NPD) was down $0.04 (1.7%) to $2.35 on light volume. Throughout the day, 50,933 shares of China Nepstar Chain Drugstore exchanged hands as compared to its average daily volume of 72,900 shares. The stock ranged in price between $2.31-$2.43 after having opened the day at $2.32 as compared to the previous trading day's close of $2.39.

China Nepstar Chain Drugstore Ltd., through its subsidiaries, owns and operates a retail drugstore chain in China. China Nepstar Chain Drugstore has a market cap of $235.9 million and is part of the services sector. Shares are up 29.9% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate China Nepstar Chain Drugstore a buy, 1 analyst rates it a sell, and none rate it a hold.

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TheStreet Ratings rates China Nepstar Chain Drugstore as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on NPD go as follows:

  • The revenue growth came in higher than the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 8.0%. 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.
  • Compared to its closing price of one year ago, NPD's share price has jumped by 43.47%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • NPD has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.79 is somewhat weak and could be cause for future problems.
  • CHINA NEPSTAR CHAIN DRUG-ADS 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CHINA NEPSTAR CHAIN DRUG-ADS reported lower earnings of $0.02 versus $0.14 in the prior year. For the next year, the market is expecting a contraction of 50.0% in earnings ($0.01 versus $0.02).
  • 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 Food & Staples Retailing industry. The net income has significantly decreased by 355.5% when compared to the same quarter one year ago, falling from $1.15 million to -$2.93 million.

You can view the full analysis from the report here: China Nepstar Chain Drugstore 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.

China Jo-Jo Drugstores ( CJJD) was another company that pushed the Retail industry lower today. China Jo-Jo Drugstores was down $0.05 (3.0%) to $1.64 on light volume. Throughout the day, 19,839 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 43,400 shares. The stock ranged in price between $1.63-$1.71 after having opened the day at $1.69 as compared to the previous trading day's close of $1.69.

China Jo-Jo Drugstores, Inc. operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. China Jo-Jo Drugstores has a market cap of $24.4 million and is part of the services sector. Shares are up 76.0% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates China Jo-Jo Drugstores 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, poor profit margins and weak operating cash flow.

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

Highlights from TheStreet Ratings analysis on CJJD go as follows:

  • CHINA JO-JO DRUGSTORES INC's earnings per share declined by 48.6% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 versus -$1.05 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 Food & Staples Retailing industry. The net income has significantly decreased by 55.1% when compared to the same quarter one year ago, falling from -$9.85 million to -$15.29 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 Food & Staples Retailing industry and the overall market, CHINA JO-JO DRUGSTORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA JO-JO DRUGSTORES INC is currently extremely low, coming in at 3.64%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -94.77% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to $1.37 million or 6.22% 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: China Jo-Jo Drugstores 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.

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