3 Stocks Pushing The Leisure 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 Leisure industry as a whole closed the day down 1.2% versus the S&P 500, which was down 0.9%. Laggards within the Leisure industry included Dover Downs Gaming & Entertainment ( DDE), down 2.4%, Canterbury Park ( CPHC), down 3.1%, Chanticleer Holdings ( HOTR), down 4.0%, Full House Resorts ( FLL), down 4.5% and Red Lion Hotels ( RLH), down 1.6%.

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

Red Lion Hotels ( RLH) is one of the companies that pushed the Leisure industry lower today. Red Lion Hotels was down $0.09 (1.6%) to $5.44 on light volume. Throughout the day, 8,507 shares of Red Lion Hotels exchanged hands as compared to its average daily volume of 18,900 shares. The stock ranged in price between $5.37-$5.45 after having opened the day at $5.38 as compared to the previous trading day's close of $5.53.

Red Lion Hotels Corporation, a hospitality and leisure company, owns, operates, and franchises hotels under its Red Lion Hotels, Red Lion Inns & Suites, and Leo Hotel Collection brands. It operates in three segments: Hotels, Franchise, and Entertainment. Red Lion Hotels has a market cap of $109.2 million and is part of the services sector. Shares are down 8.6% year-to-date as of the close of trading on Monday.

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 Red Lion Hotels as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on RLH go as follows:

  • 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 Hotels, Restaurants & Leisure industry average. The net income has decreased by 13.2% when compared to the same quarter one year ago, dropping from -$3.11 million to -$3.52 million.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, RED LION HOTELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RED LION HOTELS CORP is currently extremely low, coming in at 2.59%. Regardless of RLH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RLH's net profit margin of -11.57% significantly underperformed when compared to the industry average.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, RLH has underperformed the S&P 500 Index, declining 17.60% from its price level of one year ago. 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.
  • RED LION HOTELS CORP's earnings per share declined by 13.3% 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, RED LION HOTELS CORP continued to lose money by earning -$0.43 versus -$0.58 in the prior year.

You can view the full analysis from the report here: Red Lion Hotels 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, Full House Resorts ( FLL) was down $0.06 (4.5%) to $1.27 on light volume. Throughout the day, 26,584 shares of Full House Resorts exchanged hands as compared to its average daily volume of 71,700 shares. The stock ranged in price between $1.25-$1.33 after having opened the day at $1.32 as compared to the previous trading day's close of $1.33.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $25.9 million and is part of the services sector. Shares are down 52.5% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Full House Resorts 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 Full House Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from TheStreet Ratings analysis on FLL go as follows:

  • 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 287.8% when compared to the same quarter one year ago, falling from $0.58 million to -$1.08 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, FULL HOUSE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to $1.81 million or 65.76% when compared to the same quarter last year. Despite a decrease in cash flow of 65.76%, FULL HOUSE RESORTS INC is in line with the industry average cash flow growth rate of -68.88%.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 51.88%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 300.00% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • FULL HOUSE RESORTS 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, FULL HOUSE RESORTS INC swung to a loss, reporting -$0.21 versus $1.49 in the prior year. This year, the market expects an improvement in earnings (-$0.06 versus -$0.21).

You can view the full analysis from the report here: Full House Resorts 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 Downs Gaming & Entertainment ( DDE) was another company that pushed the Leisure industry lower today. Dover Downs Gaming & Entertainment was down $0.03 (2.4%) to $1.23 on light volume. Throughout the day, 8,355 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 26,500 shares. The stock ranged in price between $1.23-$1.26 after having opened the day at $1.25 as compared to the previous trading day's close of $1.26.

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. Dover Downs Gaming & Entertainment has a market cap of $22.7 million and is part of the services sector. Shares are down 14.9% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates Dover Downs Gaming & Entertainment 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 DDE go as follows:

  • DOVER DOWNS GAMING & ENTMT's earnings per share declined by 50.0% in the most recent quarter compared to 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, DOVER DOWNS GAMING & ENTMT reported lower earnings of $0.01 versus $0.15 in the prior year. For the next year, the market is expecting a contraction of 100.0% in earnings ($0.00 versus $0.01).
  • 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 66.6% when compared to the same quarter one year ago, falling from $0.49 million to $0.16 million.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DOVER DOWNS GAMING & ENTMT's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 9.82%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 0.35% significantly trails the industry average.
  • Net operating cash flow has decreased to $1.49 million or 27.27% when compared to the same quarter last year. Despite a decrease in cash flow DOVER DOWNS GAMING & ENTMT is still fairing well by exceeding its industry average cash flow growth rate of -68.88%.

You can view the full analysis from the report here: Dover Downs Gaming & Entertainment 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.

More from Markets

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

Global Stocks Rally as US-China Trade War Thaws; Dow Could Test 25,000

GE Confirms $11.1 Billion Transportation Merger With Wabtec

GE Confirms $11.1 Billion Transportation Merger With Wabtec

China Trade Truce, General Electric and Tesla - 5 Things You Must Know

China Trade Truce, General Electric and Tesla - 5 Things You Must Know

GE Shares Gain Amid Reports of $20 Billion Wabtec Deal

GE Shares Gain Amid Reports of $20 Billion Wabtec Deal

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)

Listen: Here's What You Need To Know About ETFs Today (Hint: They're on Fire!)