3 Stocks Improving Performance Of The Retail Industry

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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 11 points (0.1%) at 17,078 as of Wednesday, Sept. 3, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,398 issues advancing vs. 1,669 declining with 141 unchanged.

The Retail industry as a whole closed the day down 0.6% versus the S&P 500, which was down 0.1%. Top gainers within the Retail industry included Alon Blue Square Israel ( BSI), up 7.0%, China Jo-Jo Drugstores ( CJJD), up 3.5%, dELiA*s ( DLIA), up 5.1%, Gordman's Stores ( GMAN), up 1.8% and LightInTheBox Holding Co Ltd ADR ( LITB), up 3.6%.

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

Gordman's Stores ( GMAN) is one of the companies that pushed the Retail industry higher today. Gordman's Stores was up $0.06 (1.8%) to $3.62 on light volume. Throughout the day, 44,536 shares of Gordman's Stores exchanged hands as compared to its average daily volume of 133,000 shares. The stock ranged in a price between $3.60-$3.65 after having opened the day at $3.60 as compared to the previous trading day's close of $3.55.

Gordmans Stores, Inc. operates department stores under the Gordmans name in the United States. Its merchandise selection includes a range of apparel, footwear, and home fashions products, as well as accessories. Gordman's Stores has a market cap of $69.2 million and is part of the services sector. Shares are down 53.7% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Gordman's Stores a buy, no analysts rate it a sell, and 3 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 Gordman's Stores 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, generally high debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on GMAN go as follows:

  • GORDMANS STORES 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. 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, GORDMANS STORES INC reported lower earnings of $0.42 versus $1.21 in the prior year. For the next year, the market is expecting a contraction of 150.0% in earnings (-$0.21 versus $0.42).
  • 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 Multiline Retail industry. The net income has significantly decreased by 441.4% when compared to the same quarter one year ago, falling from $0.93 million to -$3.19 million.
  • The debt-to-equity ratio of 1.34 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.24, which clearly demonstrates the inability to cover short-term cash 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 Multiline Retail industry and the overall market, GORDMANS STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • 41.77% is the gross profit margin for GORDMANS STORES INC which we consider to be strong. Regardless of GMAN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of -2.23% trails the industry average.

You can view the full analysis from the report here: Gordman's Stores 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, dELiA*s ( DLIA) was up $0.02 (5.1%) to $0.47 on light volume. Throughout the day, 147,676 shares of dELiA*s exchanged hands as compared to its average daily volume of 552,900 shares. The stock ranged in a price between $0.44-$0.48 after having opened the day at $0.44 as compared to the previous trading day's close of $0.44.

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 $33.3 million and is part of the services sector. Shares are down 49.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate dELiA*s 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 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.

China Jo-Jo Drugstores ( CJJD) was another company that pushed the Retail industry higher today. China Jo-Jo Drugstores was up $0.05 (3.5%) to $1.41 on heavy volume. Throughout the day, 50,026 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 27,000 shares. The stock ranged in a price between $1.36-$1.46 after having opened the day at $1.36 as compared to the previous trading day's close of $1.36.

China Jo-Jo Drugstores, Inc. operates as a retailer and distributor of pharmaceutical and other healthcare products in the People's Republic of China. China Jo-Jo Drugstores has a market cap of $21.4 million and is part of the services sector. Shares are up 41.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate China Jo-Jo Drugstores a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Jo-Jo Drugstores 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, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on CJJD go as follows:

  • CHINA JO-JO DRUGSTORES INC's earnings per share declined by 48.6% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 versus -$1.05 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 55.1% when compared to the same quarter one year ago, falling from -$9.85 million to -$15.29 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 Food & Staples Retailing industry and the overall market, CHINA JO-JO DRUGSTORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA JO-JO DRUGSTORES INC is currently extremely low, coming in at 3.64%. It has decreased significantly from the same period last year. Along with this, the net profit margin of -94.77% is significantly below that of the industry average.
  • Net operating cash flow has declined marginally to $1.37 million or 6.22% when compared to the same quarter last year. Despite a decrease in cash flow of 6.22%, CHINA JO-JO DRUGSTORES INC is in line with the industry average cash flow growth rate of -13.14%.

You can view the full analysis from the report here: China Jo-Jo Drugstores 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.

More from Markets

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Sohn Conference Briefly Distracts From Barrage of Earnings -- ICYMI

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Dow and Nasdaq Finish Lower as 10-Year Treasury Yield Hovers Near 3%

Video: Stop Using Student Loan Money to Buy Bitcoin

Video: Stop Using Student Loan Money to Buy Bitcoin

Let the Najarian Brothers Crash-Proof Portfolio

Let the Najarian Brothers Crash-Proof Portfolio

Facebook Sends Facial Recognition Notification in Error

Facebook Sends Facial Recognition Notification in Error