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The Specialty Retail industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Specialty Retail industry included Dover Saddlery ( DOVR), down 2.5%, Books-A-Million ( BAMM), down 2.7%, PCM ( PCMI), down 1.8%, CSS Industries ( CSS), down 1.7% and America's Car-Mart ( CRMT), down 3.1%.

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

PCM ( PCMI) is one of the companies that pushed the Specialty Retail industry lower today. PCM was down $0.18 (1.8%) to $9.95 on average volume. Throughout the day, 13,299 shares of PCM exchanged hands as compared to its average daily volume of 13,600 shares. The stock ranged in price between $9.95-$10.21 after having opened the day at $10.07 as compared to the previous trading day's close of $10.13.

PCM, Inc. operates as a multi-vendor provider of technology products, services, and solutions to commercial businesses; state, local, and federal governments; and educational institutions and individual consumers primarily in the United States. PCM has a market cap of $128.6 million and is part of the services sector. Shares are up 0.2% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates PCM as a hold. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on PCMI go as follows:

  • PCM INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, PCM INC increased its bottom line by earning $0.69 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.69).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 133.6% when compared to the same quarter one year prior, rising from $1.24 million to $2.89 million.
  • Net operating cash flow has increased to $17.94 million or 48.16% when compared to the same quarter last year. Despite an increase in cash flow, PCM INC's cash flow growth rate is still lower than the industry average growth rate of 66.63%.
  • In its most recent trading session, PCMI 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. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • The gross profit margin for PCM INC is rather low; currently it is at 15.75%. Regardless of PCMI'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 0.85% trails the industry average.

You can view the full analysis from the report here: PCM Ratings Report

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At the close, Books-A-Million ( BAMM) was down $0.06 (2.7%) to $2.15 on light volume. Throughout the day, 9,656 shares of Books-A-Million exchanged hands as compared to its average daily volume of 21,000 shares. The stock ranged in price between $2.06-$2.20 after having opened the day at $2.20 as compared to the previous trading day's close of $2.21.

Books-A-Million, Inc. operates as a book retailer primarily in the eastern United States. It operates in three segments: Retail Trade, Electronic Commerce Trade, and Real Estate Development and Management. Books-A-Million has a market cap of $32.4 million and is part of the services sector. Shares are down 11.3% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Books-A-Million 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 generally high debt management risk.

Highlights from TheStreet Ratings analysis on BAMM go as follows:

  • BOOKS-A-MILLION 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. During the past fiscal year, BOOKS-A-MILLION INC swung to a loss, reporting -$0.52 versus $0.15 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 Specialty Retail industry. The net income has significantly decreased by 50.6% when compared to the same quarter one year ago, falling from -$3.70 million to -$5.58 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Specialty Retail industry and the overall market, BOOKS-A-MILLION INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for BOOKS-A-MILLION INC is currently lower than what is desirable, coming in at 27.36%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -5.37% is significantly below that of the industry average.
  • The share price of BOOKS-A-MILLION INC has not done very well: it is down 18.33% 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.

You can view the full analysis from the report here: Books-A-Million Ratings Report

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Dover Saddlery ( DOVR) was another company that pushed the Specialty Retail industry lower today. Dover Saddlery was down $0.13 (2.5%) to $5.15 on heavy volume. Throughout the day, 46,478 shares of Dover Saddlery exchanged hands as compared to its average daily volume of 5,900 shares. The stock ranged in price between $5.15-$5.19 after having opened the day at $5.17 as compared to the previous trading day's close of $5.28.

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 $29.4 million and is part of the services sector. Shares are down 1.3% year-to-date as of the close of trading on Friday.

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 unimpressive growth in net income, weak operating cash flow and feeble growth in the company's earnings per share.

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Highlights from TheStreet Ratings analysis on DOVR go as follows:

  • The revenue growth came in higher than the industry average of 1.0%. 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 31.98%, 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.
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Specialty Retail industry average. The net income has decreased by 0.9% when compared to the same quarter one year ago, dropping from -$0.54 million to -$0.54 million.
  • Net operating cash flow has significantly decreased to -$7.09 million or 81.24% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

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

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