3 Stocks Pushing The Leisure Industry Lower

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The Leisure industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.8%. Laggards within the Leisure industry included Dover Motorsports ( DVD), down 1.7%, Chanticleer Holdings ( HOTR), down 4.5%, Premier Exhibitions ( PRXI), down 4.2%, Red Lion Hotels ( RLH), down 1.6% and Country Style Cooking Restaurant Chain Co L ( CCSC), down 5.7%.

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

Red Lion Hotels ( RLH) is one of the companies that pushed the Leisure industry lower today. Red Lion Hotels was down $0.09 (1.6%) to $5.53 on heavy volume. Throughout the day, 23,652 shares of Red Lion Hotels exchanged hands as compared to its average daily volume of 14,500 shares. The stock ranged in price between $5.52-$5.69 after having opened the day at $5.67 as compared to the previous trading day's close of $5.62.

Red Lion Hotels Corporation, a hospitality and leisure company, owns, operates, and franchises hotels under its Red Lion Hotels, Red Lion Inns & Suites, and Leo Hotel Collection brands. It operates in three segments: Hotels, Franchise, and Entertainment. Red Lion Hotels has a market cap of $113.0 million and is part of the services sector. Shares are down 7.1% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Red Lion Hotels as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

Highlights from TheStreet Ratings analysis on RLH go as follows:

  • The revenue growth came in higher than the industry average of 5.5%. Since the same quarter one year prior, revenues rose by 17.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
  • RED LION HOTELS CORP reported significant earnings per share improvement 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 year. During the past fiscal year, RED LION HOTELS CORP continued to lose money by earning -$0.43 versus -$0.58 in the prior year.
  • 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, RED LION HOTELS CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for RED LION HOTELS CORP is currently extremely low, coming in at 14.38%. Regardless of RLH's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 12.85% trails the industry average.

You can view the full analysis from the report here: Red Lion Hotels Ratings Report

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At the close, Premier Exhibitions ( PRXI) was down $0.03 (4.2%) to $0.76 on light volume. Throughout the day, 10,403 shares of Premier Exhibitions exchanged hands as compared to its average daily volume of 85,200 shares. The stock ranged in price between $0.74-$0.79 after having opened the day at $0.76 as compared to the previous trading day's close of $0.79.

Premier Exhibitions, Inc., together with its subsidiaries, is engaged in presenting museum-quality touring exhibitions to public worldwide. The company operates through two segments, Exhibition Management and RMS Titanic. Premier Exhibitions has a market cap of $36.3 million and is part of the services sector. Shares are down 31.6% year-to-date as of the close of trading on Friday.

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TheStreet Ratings rates Premier Exhibitions 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 PRXI go as follows:

  • PREMIER EXHIBITIONS 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. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, PREMIER EXHIBITIONS INC swung to a loss, reporting -$0.01 versus $0.03 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 224.8% when compared to the same quarter one year ago, falling from $0.97 million to -$1.21 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, PREMIER EXHIBITIONS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 52.26%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 200.00% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
  • 41.17% is the gross profit margin for PREMIER EXHIBITIONS INC 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, PRXI's net profit margin of -16.17% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Premier Exhibitions Ratings Report

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Dover Motorsports ( DVD) was another company that pushed the Leisure industry lower today. Dover Motorsports was down $0.04 (1.7%) to $2.29 on light volume. Throughout the day, 7,918 shares of Dover Motorsports exchanged hands as compared to its average daily volume of 14,400 shares. The stock ranged in price between $2.27-$2.32 after having opened the day at $2.32 as compared to the previous trading day's close of $2.33.

Dover Motorsports, Inc., through its subsidiaries, markets and promotes motorsports entertainment in the United States. The company promotes events under the auspices of the sanctioning body in motorsports, the National Association for Stock Car Auto Racing. Dover Motorsports has a market cap of $42.2 million and is part of the services sector. Shares are down 7.2% year-to-date as of the close of trading on Friday. Currently there is 1 analyst who rates Dover Motorsports a buy, 1 analyst rates it a sell, and none rate it a hold.

TheStreet Ratings rates Dover Motorsports as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, disappointing return on equity and deteriorating net income.

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Highlights from TheStreet Ratings analysis on DVD go as follows:

  • The current debt-to-equity ratio, 0.33, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.13, which illustrates the ability to avoid short-term cash problems.
  • 38.02% is the gross profit margin for DOVER MOTORSPORTS INC which we consider to be strong. Regardless of DVD's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, DVD's net profit margin of 19.95% compares favorably to the industry average.
  • In its most recent trading session, DVD 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, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DOVER MOTORSPORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.

You can view the full analysis from the report here: Dover Motorsports 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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3 Leisure Stocks Driving The Industry Higher

3 Leisure Stocks Driving The Industry Higher