3 Leisure 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.

The three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 15 points (0.1%) at 17,122 as of Wednesday, Aug. 27, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,719 issues advancing vs. 1,312 declining with 167 unchanged.

The Leisure industry as a whole was unchanged today versus the S&P 500, which was unchanged. Top gainers within the Leisure industry included Nevada Gold & Casinos ( UWN), up 1.8%, Flanigan's ( BDL), up 1.9%, Dover Motorsports ( DVD), up 3.9%, Full House Resorts ( FLL), up 1.9% and Lakes Entertainment ( LACO), up 6.9%.

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

Full House Resorts ( FLL) is one of the companies that pushed the Leisure industry higher today. Full House Resorts was up $0.02 (1.9%) to $0.96 on light volume. Throughout the day, 53,390 shares of Full House Resorts exchanged hands as compared to its average daily volume of 80,000 shares. The stock ranged in a price between $0.95-$0.98 after having opened the day at $0.95 as compared to the previous trading day's close of $0.94.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $17.9 million and is part of the services sector. Shares are down 66.4% year-to-date as of the close of trading on Tuesday. Currently there are 2 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. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 64.71%, 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 (-$0.11 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.

At the close, Dover Motorsports ( DVD) was up $0.10 (3.9%) to $2.69 on average volume. Throughout the day, 19,865 shares of Dover Motorsports exchanged hands as compared to its average daily volume of 19,200 shares. The stock ranged in a price between $2.60-$2.72 after having opened the day at $2.60 as compared to the previous trading day's close of $2.59.

Dover Motorsports, Inc., through its subsidiaries, markets and promotes motorsports entertainment in the United States. The company promotes events under the auspices of the sanctioning body in motorsports, the National Association for Stock Car Auto Racing. Dover Motorsports has a market cap of $47.8 million and is part of the services sector. Shares are up 3.2% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Dover Motorsports a buy, 1 analyst rates 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 Dover Motorsports as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, good cash flow from operations and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and deteriorating net income.

Highlights from TheStreet Ratings analysis on DVD go as follows:

  • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has increased to -$1.42 million or 15.23% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -5.65%.
  • 38.02% is the gross profit margin for DOVER MOTORSPORTS INC which we consider to be strong. Regardless of DVD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DVD's net profit margin of 19.95% compares favorably to the industry average.
  • The change in net income from the same quarter one year ago has exceeded that of the Hotels, Restaurants & Leisure industry average, but is less than that of the S&P 500. The net income has decreased by 1.2% when compared to the same quarter one year ago, dropping from $4.90 million to $4.84 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 Hotels, Restaurants & Leisure industry and the overall market, DOVER MOTORSPORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Dover Motorsports 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.

Nevada Gold & Casinos ( UWN) was another company that pushed the Leisure industry higher today. Nevada Gold & Casinos was up $0.02 (1.8%) to $1.15 on light volume. Throughout the day, 10,957 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 20,500 shares. The stock ranged in a price between $1.15-$1.16 after having opened the day at $1.15 as compared to the previous trading day's close of $1.13.

Nevada Gold & Casinos, Inc., a gaming company, is engaged in financing, developing, owning, and operating gaming properties and projects primarily in Washington and South Dakota. The company operates in three segments: Washington Gold, South Dakota Gold, and Corporate. Nevada Gold & Casinos has a market cap of $18.6 million and is part of the services sector. Shares are down 17.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Nevada Gold & Casinos a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Nevada Gold & Casinos as a hold. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • NEVADA GOLD & CASINOS INC has improved earnings per share by 33.3% 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. During the past fiscal year, NEVADA GOLD & CASINOS INC increased its bottom line by earning $0.03 versus $0.00 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 42.6% when compared to the same quarter one year prior, rising from $0.45 million to $0.65 million.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 5.6%. Since the same quarter one year prior, revenues slightly dropped by 3.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, NEVADA GOLD & CASINOS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, UWN 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. This company's share value has not moved any higher or lower since its value 12 months ago.

You can view the full analysis from the report here: Nevada Gold & Casinos 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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