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.

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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

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