3 Leisure Stocks Moving The Industry Upward

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 101 points (0.6%) at 17,132 as of Tuesday, Sept. 16, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,961 issues advancing vs. 1,099 declining with 138 unchanged.

The Leisure industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.7%. Top gainers within the Leisure industry included Bowl America ( BWL.A), up 4.7%, Nevada Gold & Casinos ( UWN), up 3.3%, PokerTek ( PTEK), up 2.3%, Full House Resorts ( FLL), up 2.1% and Luby's ( LUB), up 1.8%.

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 (2.1%) to $0.99 on average volume. Throughout the day, 84,496 shares of Full House Resorts exchanged hands as compared to its average daily volume of 78,900 shares. The stock ranged in a price between $0.97-$1.01 after having opened the day at $0.98 as compared to the previous trading day's close of $0.97.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $18.8 million and is part of the services sector. Shares are down 64.5% year-to-date as of the close of trading on Monday. 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 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 20116.7% when compared to the same quarter one year ago, falling from -$0.04 million to -$8.49 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 $0.66 million or 63.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • FULL HOUSE RESORTS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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).
  • This stock's share value has moved by only 63.93% over the past year. 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.

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, PokerTek ( PTEK) was up $0.03 (2.3%) to $1.34 on heavy volume. Throughout the day, 109,270 shares of PokerTek exchanged hands as compared to its average daily volume of 24,800 shares. The stock ranged in a price between $1.30-$1.34 after having opened the day at $1.30 as compared to the previous trading day's close of $1.31.

PokerTek, Inc. develops, manufactures, and markets electronic table games and related products for casinos, cruise lines, racinos, card clubs, and lotteries worldwide. PokerTek has a market cap of $12.3 million and is part of the services sector. Shares are up 36.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate PokerTek 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 PokerTek as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PTEK 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 949.0% when compared to the same quarter one year ago, falling from -$0.05 million to -$0.54 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, POKERTEK 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 -$0.18 million or 533.33% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The gross profit margin for POKERTEK INC is currently very high, coming in at 87.70%. Regardless of PTEK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PTEK's net profit margin of -56.25% significantly underperformed when compared to the industry average.
  • The revenue fell significantly faster than the industry average of 5.6%. Since the same quarter one year prior, revenues fell by 40.7%. 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: PokerTek 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 $0.04 (3.3%) to $1.25 on heavy volume. Throughout the day, 60,140 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 20,200 shares. The stock ranged in a price between $1.18-$1.25 after having opened the day at $1.22 as compared to the previous trading day's close of $1.21.

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 $18.2 million and is part of the services sector. Shares are down 18.2% year-to-date as of the close of trading on Monday. 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 experienced relatively poor performance when compared with the S&P 500 during 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 5.7%. 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. Looking ahead, our view is that this company's fundamentals will not have much impact in either direction, allowing the stock to generally move up or down based on the push and pull of the broad market.

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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