3 Stocks Pushing The Retail 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 25.94 points (-0.2%) at 17,111 as of Monday, Sept. 8, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,156 issues advancing vs. 1,888 declining with 146 unchanged.

The Retail industry as a whole was unchanged today versus the S&P 500, which was down 0.3%. Top gainers within the Retail industry included China Jo-Jo Drugstores ( CJJD), up 3.8%, ALCO Stores ( ALCS), up 2.1%, Acorn International ( ATV), up 4.4%, dELiA*s ( DLIA), up 3.3% and U S Auto Parts Network ( PRTS), up 3.6%.

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

dELiA*s ( DLIA) is one of the companies that pushed the Retail industry higher today. dELiA*s was up $0.02 (3.3%) to $0.48 on light volume. Throughout the day, 354,904 shares of dELiA*s exchanged hands as compared to its average daily volume of 539,900 shares. The stock ranged in a price between $0.46-$0.49 after having opened the day at $0.46 as compared to the previous trading day's close of $0.46.

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 47.7% year-to-date as of the close of trading on Friday. 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.

At the close, Acorn International ( ATV) was up $0.09 (4.4%) to $2.14 on heavy volume. Throughout the day, 70,978 shares of Acorn International exchanged hands as compared to its average daily volume of 36,700 shares. The stock ranged in a price between $2.03-$2.25 after having opened the day at $2.03 as compared to the previous trading day's close of $2.05.

Acorn International, Inc., an integrated multi-platform marketing company, develops, promotes, and sells a portfolio of proprietary-branded products; and third parties products. The company operates two sales platforms, including integrated direct sales and a nationwide distribution network. Acorn International has a market cap of $59.3 million and is part of the services sector. Shares are up 32.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Acorn International 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 Acorn International 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.

Highlights from TheStreet Ratings analysis on ATV go as follows:

  • ACORN INTERNATIONAL INC -ADR's earnings per share declined by 50.0% 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, ACORN INTERNATIONAL INC -ADR reported poor results of -$1.45 versus -$0.59 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 Internet & Catalog Retail industry. The net income has significantly decreased by 54.9% when compared to the same quarter one year ago, falling from -$8.70 million to -$13.48 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 Internet & Catalog Retail industry and the overall market, ACORN INTERNATIONAL INC -ADR's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of ACORN INTERNATIONAL INC -ADR has not done very well: it is down 14.00% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • 41.43% is the gross profit margin for ACORN INTERNATIONAL INC -ADR 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, ATV's net profit margin of -91.20% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Acorn International 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 (3.8%) to $1.45 on heavy volume. Throughout the day, 287,831 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 27,800 shares. The stock ranged in a price between $1.30-$1.60 after having opened the day at $1.38 as compared to the previous trading day's close of $1.40.

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 $21.0 million and is part of the services sector. Shares are up 45.8% year-to-date as of the close of trading on Friday. 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 disappointing return on equity, poor profit margins, weak operating cash flow and generally high debt management risk.

Highlights from TheStreet Ratings analysis on CJJD go as follows:

  • 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 rather low; currently it is at 18.31%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -2.10% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$1.85 million or 152.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CJJD's debt-to-equity ratio of 0.66 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 0.46 is very low and demonstrates very weak liquidity.
  • CHINA JO-JO DRUGSTORES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CHINA JO-JO DRUGSTORES INC reported poor results of -$1.81 versus -$1.05 in the prior year.

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.

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