3 Specialty Retail Stocks Pushing The 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 81 points (0.5%) at 16,920 as of Tuesday, Aug. 19, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,954 issues advancing vs. 1,082 declining with 162 unchanged.

The Specialty Retail industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.5%. Top gainers within the Specialty Retail industry included Charles & Colvard ( CTHR), up 3.6%, Lentuo International ( LAS), up 6.6%, CSS Industries ( CSS), up 1.6%, Build-A-Bear Workshop ( BBW), up 4.5% and HHGregg ( HGG), up 1.8%.

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

CSS Industries ( CSS) is one of the companies that pushed the Specialty Retail industry higher today. CSS Industries was up $0.41 (1.6%) to $25.31 on light volume. Throughout the day, 9,498 shares of CSS Industries exchanged hands as compared to its average daily volume of 21,000 shares. The stock ranged in a price between $24.74-$25.42 after having opened the day at $24.97 as compared to the previous trading day's close of $24.90.

CSS Industries, Inc., a consumer products company, is engaged in the design, manufacture, procurement, distribution, and sale of various occasion and seasonal social expression products primarily to mass market retailers primarily in the United States and Canada. CSS Industries has a market cap of $226.3 million and is part of the financial sector. Shares are down 13.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate CSS Industries a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates CSS Industries as a buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on CSS go as follows:

  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 20.5% when compared to the same quarter one year prior, going from -$1.67 million to -$1.33 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 9.3%. Since the same quarter one year prior, revenues slightly increased by 2.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • CSS 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. Along with this, the company maintains a quick ratio of 3.70, which clearly demonstrates the ability to cover short-term cash needs.
  • CSS INDUSTRIES INC has improved earnings per share by 22.2% 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 year. During the past fiscal year, CSS INDUSTRIES INC increased its bottom line by earning $1.97 versus $1.62 in the prior year.

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

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