3 Stocks Pushing The Leisure Industry Lower

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The Leisure industry as a whole was unchanged today versus the S&P 500, which was unchanged. Laggards within the Leisure industry included Premier Exhibitions ( PRXI), down 4.3%, Good Times Restaurants ( GTIM), down 2.2%, Cosi ( COSI), down 4.2%, Papa Murphy's Holdings ( FRSH), down 2.1% and Bravo Brio Restaurant Group ( BBRG), down 1.9%.

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

Cosi ( COSI) is one of the companies that pushed the Leisure industry lower today. Cosi was down $0.07 (4.2%) to $1.60 on light volume. Throughout the day, 89,090 shares of Cosi exchanged hands as compared to its average daily volume of 126,900 shares. The stock ranged in price between $1.58-$1.73 after having opened the day at $1.66 as compared to the previous trading day's close of $1.67.

Cosi, Inc. owns, operates, and franchises fast-casual restaurants. The company offers food and beverage products for four dayparts comprising breakfast, lunch, snacking, and dinner. It also provides catering services for breakfast, lunch, and afternoon snacking. Cosi has a market cap of $34.2 million and is part of the services sector. Shares are down 0.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Cosi 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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on COSI go as follows:

  • COSI INC's earnings per share declined by 6.3% 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, COSI INC reported poor results of -$0.65 versus -$0.28 in the prior year. For the next year, the market is expecting a contraction of 27.7% in earnings (-$0.83 versus -$0.65).
  • 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 14.0% when compared to the same quarter one year ago, dropping from -$2.74 million to -$3.13 million.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, COSI has underperformed the S&P 500 Index, declining 21.06% 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.
  • Net operating cash flow has declined marginally to -$3.02 million or 0.19% when compared to the same quarter last year. Despite a decrease in cash flow of 0.19%, COSI INC is in line with the industry average cash flow growth rate of -5.65%.
  • COSI, with its decline in revenue, slightly underperformed the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 14.8%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.

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

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At the close, Good Times Restaurants ( GTIM) was down $0.09 (2.2%) to $4.00 on average volume. Throughout the day, 43,807 shares of Good Times Restaurants exchanged hands as compared to its average daily volume of 50,100 shares. The stock ranged in price between $3.93-$4.12 after having opened the day at $4.11 as compared to the previous trading day's close of $4.09.

Good Times Restaurants, Inc., through its subsidiaries, develops, owns, operates, and franchises hamburger-oriented drive-through restaurants under the Good Times Burgers & Frozen Custard name in Colorado. It also has franchised restaurants in North Dakota and Wyoming. Good Times Restaurants has a market cap of $30.8 million and is part of the services sector. Shares are up 62.3% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Good Times Restaurants a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Good Times Restaurants as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on GTIM go as follows:

  • The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 16.7%. 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.
  • GTIM's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • GOOD TIMES RESTAURANTS INC's earnings per share declined by 50.0% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. However, the consensus estimates suggest that there will be an upward trend in the coming year. During the past fiscal year, GOOD TIMES RESTAURANTS INC's EPS of -$0.29 remained unchanged from the prior years' EPS of -$0.29. This year, the market expects an improvement in earnings (-$0.11 versus -$0.29).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, GOOD TIMES RESTAURANTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for GOOD TIMES RESTAURANTS INC is rather low; currently it is at 18.36%. Regardless of GTIM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GTIM's net profit margin of 2.13% is significantly lower than the industry average.

You can view the full analysis from the report here: Good Times Restaurants Ratings Report

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Premier Exhibitions ( PRXI) was another company that pushed the Leisure industry lower today. Premier Exhibitions was down $0.03 (4.3%) to $0.66 on light volume. Throughout the day, 17,372 shares of Premier Exhibitions exchanged hands as compared to its average daily volume of 80,500 shares. The stock ranged in price between $0.66-$0.70 after having opened the day at $0.68 as compared to the previous trading day's close of $0.69.

Premier Exhibitions, Inc., together with its subsidiaries, is engaged in presenting museum-quality touring exhibitions to public worldwide. The company operates through two segments, Exhibition Management and RMS Titanic. Premier Exhibitions has a market cap of $33.8 million and is part of the services sector. Shares are down 40.5% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Premier Exhibitions 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 and generally disappointing historical performance in the stock itself.

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Highlights from TheStreet Ratings analysis on PRXI go as follows:

  • PREMIER EXHIBITIONS 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 suffered a declining pattern earnings per share over the past two years. During the past fiscal year, PREMIER EXHIBITIONS INC swung to a loss, reporting -$0.01 versus $0.03 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 224.8% when compared to the same quarter one year ago, falling from $0.97 million to -$1.21 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, PREMIER EXHIBITIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 59.77%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 41.17% is the gross profit margin for PREMIER EXHIBITIONS INC which we consider to be strong. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, PRXI's net profit margin of -16.17% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Premier Exhibitions 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.

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