3 Stocks Pushing The Retail Industry Lower

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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 China Jo-Jo Drugstores ( CJJD), down 6.9%, New York & Company ( NWY), down 1.6%, Natural Grocers by Vitamin Cottage ( NGVC), down 4.1% and Sears Holdings ( SHLD), down 2.7%.

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

Natural Grocers by Vitamin Cottage ( NGVC) is one of the companies that pushed the Retail industry lower today. Natural Grocers by Vitamin Cottage was down $0.77 (4.1%) to $17.95 on heavy volume. Throughout the day, 255,414 shares of Natural Grocers by Vitamin Cottage exchanged hands as compared to its average daily volume of 148,500 shares. The stock ranged in price between $17.88-$18.91 after having opened the day at $18.71 as compared to the previous trading day's close of $18.72.

Natural Grocers by Vitamin Cottage, Inc. operates natural and organic grocery and dietary supplement stores in the United States. Natural Grocers by Vitamin Cottage has a market cap of $421.0 million and is part of the services sector. Shares are down 55.9% year-to-date as of the close of trading on Tuesday. Currently there are 3 analysts who rate Natural Grocers by Vitamin Cottage a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Natural Grocers by Vitamin Cottage as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, premium valuation and poor profit margins.

Highlights from TheStreet Ratings analysis on NGVC go as follows:

  • NGVC's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 55.37%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, NGVC is still more expensive than most of the other companies in its industry.
  • The gross profit margin for NATURAL GROCERS VITAMIN CTGE is currently lower than what is desirable, coming in at 28.95%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.50% trails that of the industry average.
  • 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. When compared to other companies in the Food & Staples Retailing industry and the overall market, NATURAL GROCERS VITAMIN CTGE's return on equity is below that of both the industry average and the S&P 500.
  • NGVC's debt-to-equity ratio is very low at 0.21 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.18 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Natural Grocers by Vitamin Cottage Ratings Report

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At the close, New York & Company ( NWY) was down $0.05 (1.6%) to $3.18 on light volume. Throughout the day, 66,453 shares of New York & Company exchanged hands as compared to its average daily volume of 145,100 shares. The stock ranged in price between $3.16-$3.25 after having opened the day at $3.22 as compared to the previous trading day's close of $3.23.

New York & Company, Inc., together with its subsidiaries, operates as a specialty retailer of women's fashion apparel and accessories in the United States. New York & Company has a market cap of $208.0 million and is part of the services sector. Shares are down 26.1% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate New York & Company a buy, no analysts rate it a sell, and 3 rate it a hold.

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TheStreet Ratings rates New York & Company as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself, disappointing return on equity, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on NWY go as follows:

  • NWY's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 36.86%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Although its share price is down sharply from a year ago, do not assume that it can now be tagged as cheap and attractive. The reality is that, based on its current price in relation to its earnings, NWY is still more expensive than most of the other companies in its industry.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Specialty Retail industry and the overall market, NEW YORK & CO INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for NEW YORK & CO INC is currently lower than what is desirable, coming in at 30.58%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.06% trails that of the industry average.
  • Net operating cash flow has decreased to $21.02 million or 10.81% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • NWY has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Despite the fact that NWY's debt-to-equity ratio is low, the quick ratio, which is currently 0.59, displays a potential problem in covering short-term cash needs.

You can view the full analysis from the report here: New York & Company 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 lower today. China Jo-Jo Drugstores was down $0.10 (6.9%) to $1.35 on light volume. Throughout the day, 13,010 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in price between $1.35-$1.44 after having opened the day at $1.44 as compared to the previous trading day's close of $1.45.

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 $20.1 million and is part of the services sector. Shares are up 51.0% year-to-date as of the close of trading on Tuesday.

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.

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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.

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