3 Stocks Pushing The Retail Industry Lower

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 Retail industry as a whole closed the day up 0.3% versus the S&P 500, which was up 0.1%. Laggards within the Retail industry included Liberty Interactive ( LINTB), down 1.9%, China Jo-Jo Drugstores ( CJJD), down 5.0%, Acorn International ( ATV), down 5.5%, Cache ( CACH), down 4.2% and dELiA*s ( DLIA), down 27.5%.

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

Acorn International ( ATV) is one of the companies that pushed the Retail industry lower today. Acorn International was down $0.12 (5.5%) to $2.07 on light volume. Throughout the day, 30,446 shares of Acorn International exchanged hands as compared to its average daily volume of 41,600 shares. The stock ranged in price between $2.01-$2.22 after having opened the day at $2.11 as compared to the previous trading day's close of $2.19.

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 $56.6 million and is part of the services sector. Shares are up 41.2% year-to-date as of the close of trading on Wednesday.

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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

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At the close, China Jo-Jo Drugstores ( CJJD) was down $0.07 (5.0%) to $1.34 on average volume. Throughout the day, 36,780 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 31,500 shares. The stock ranged in price between $1.33-$1.53 after having opened the day at $1.44 as compared to the previous trading day's close of $1.41.

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 $22.5 million and is part of the services sector. Shares are up 56.1% year-to-date as of the close of trading on Wednesday.

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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.

Liberty Interactive ( LINTB) was another company that pushed the Retail industry lower today. Liberty Interactive was down $0.56 (1.9%) to $29.22 on light volume. Throughout the day, 300 shares of Liberty Interactive exchanged hands as compared to its average daily volume of 900 shares. The stock ranged in price between $29.20-$29.22 after having opened the day at $29.20 as compared to the previous trading day's close of $29.78.

Liberty Interactive has a market cap of $860.1 million and is part of the services sector. Shares are up 1.3% year-to-date as of the close of trading on Wednesday.

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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3 Stocks Pushing The Retail Industry Lower

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