3 Retail Stocks Moving The Industry Upward

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 60 points (0.4%) at 17,039 as of Thursday, Aug. 21, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,834 issues advancing vs. 1,204 declining with 157 unchanged.

The Retail industry as a whole closed the day up 0.2% versus the S&P 500, which was up 0.3%. Top gainers within the Retail industry included dELiA*s ( DLIA), up 2.4%, Village Super Market ( VLGEA), up 3.9%, New York & Company ( NWY), up 3.2%, Gordman's Stores ( GMAN), up 4.4% and Liberator Medical Holdings ( LBMH), up 6.3%.

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

New York & Company ( NWY) is one of the companies that pushed the Retail industry higher today. New York & Company was up $0.10 (3.2%) to $3.26 on average volume. Throughout the day, 167,080 shares of New York & Company exchanged hands as compared to its average daily volume of 135,700 shares. The stock ranged in a price between $3.12-$3.27 after having opened the day at $3.15 as compared to the previous trading day's close of $3.16.

New York & Company, Inc., together with its subsidiaries, operates as a specialty retailer of women's fashion apparel and accessories in the United States. New York & Company has a market cap of $205.0 million and is part of the services sector. Shares are down 27.7% year-to-date as of the close of trading on Wednesday. Currently there is 1 analyst who rates New York & Company a buy, no analysts rate it a sell, and 4 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 New York & Company as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, deteriorating net income, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on NWY go as follows:

  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 45.01%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 100.00% compared to the year-earlier quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, NWY is still more expensive than most of the other companies in its industry.
  • 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 117.7% when compared to the same quarter one year ago, falling from $1.59 million to -$0.28 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 Specialty Retail industry and the overall market, NEW YORK & CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NEW YORK & CO INC is currently lower than what is desirable, coming in at 31.47%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.12% trails that of the industry average.
  • Net operating cash flow has declined marginally to -$18.88 million or 1.96% when compared to the same quarter last year. Despite a decrease in cash flow of 1.96%, NEW YORK & CO INC is in line with the industry average cash flow growth rate of -5.57%.

You can view the full analysis from the report here: New York & Company 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, Village Super Market ( VLGEA) was up $0.81 (3.9%) to $21.45 on average volume. Throughout the day, 17,540 shares of Village Super Market exchanged hands as compared to its average daily volume of 18,800 shares. The stock ranged in a price between $20.64-$21.46 after having opened the day at $20.64 as compared to the previous trading day's close of $20.64.

Village Super Market, Inc., together with its subsidiaries, operates a chain of supermarkets in the United States. Village Super Market has a market cap of $199.9 million and is part of the services sector. Shares are down 33.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate Village Super Market 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 Village Super Market as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and deteriorating net income.

Highlights from TheStreet Ratings analysis on VLGEA go as follows:

  • VLGEA's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 3.5%. 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.
  • Net operating cash flow has increased to $4.76 million or 11.27% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.31%.
  • VLGEA's debt-to-equity ratio is very low at 0.18 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Despite the fact that VLGEA's debt-to-equity ratio is low, the quick ratio, which is currently 0.63, displays a potential problem in covering short-term cash needs.
  • VILLAGE SUPER MARKET's earnings per share declined by 48.5% in the most recent quarter compared to 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, VILLAGE SUPER MARKET reported lower earnings of $1.84 versus $2.27 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 31.0% when compared to the same quarter one year ago, falling from $4.62 million to $3.19 million.

You can view the full analysis from the report here: Village Super Market 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.

dELiA*s ( DLIA) was another company that pushed the Retail industry higher today. dELiA*s was up $0.01 (2.4%) to $0.42 on light volume. Throughout the day, 249,885 shares of dELiA*s exchanged hands as compared to its average daily volume of 591,700 shares. The stock ranged in a price between $0.41-$0.45 after having opened the day at $0.41 as compared to the previous trading day's close of $0.41.

dELiA*s, Inc. operates as a multi-channel retail company, primarily marketing to teenage girls in the United States. The company sells various product categories to consumers through its Website, direct mail catalogs, and retail stores. dELiA*s has a market cap of $31.9 million and is part of the services sector. Shares are down 53.4% year-to-date as of the close of trading on Wednesday. Currently there are no analysts who rate dELiA*s a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates dELiA*s as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on DLIA 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 Internet & Catalog Retail industry. The net income has significantly decreased by 26.0% when compared to the same quarter one year ago, falling from -$9.22 million to -$11.61 million.
  • The debt-to-equity ratio of 1.25 is relatively high when compared with the industry average, suggesting a need for better debt level management. To add to this, DLIA has a quick ratio of 0.57, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Internet & Catalog Retail industry and the overall market, DELIAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DELIAS INC is currently lower than what is desirable, coming in at 27.59%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -44.78% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to -$14.91 million or 4.19% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, DELIAS INC has marginally lower results.

You can view the full analysis from the report here: dELiA*s 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.

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.

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