3 Stocks Moving The Retail 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 154 points (0.9%) at 17,210 as of Wednesday, Sept. 24, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,794 issues advancing vs. 1,244 declining with 169 unchanged.

The Retail industry as a whole closed the day up 0.5% versus the S&P 500, which was up 0.8%. Top gainers within the Retail industry included Gaiam ( GAIA), up 3.6%, Cache ( CACH), up 2.3%, Liberator Medical Holdings ( LBMH), up 4.4%, Citi Trends ( CTRN), up 1.6% and Stamps.com ( STMP), up 2.5%.

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

Liberator Medical Holdings ( LBMH) is one of the companies that pushed the Retail industry higher today. Liberator Medical Holdings was up $0.12 (4.4%) to $2.91 on average volume. Throughout the day, 180,513 shares of Liberator Medical Holdings exchanged hands as compared to its average daily volume of 203,300 shares. The stock ranged in a price between $2.80-$2.94 after having opened the day at $2.94 as compared to the previous trading day's close of $2.79.

Liberator Medical Holdings, Inc., together with its subsidiaries, distributes direct-to-consumer durable medical supplies for seniors and others with chronic illness in the United States. Liberator Medical Holdings has a market cap of $156.3 million and is part of the services sector. Shares are down 29.3% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Liberator Medical Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Liberator Medical Holdings as a buy. 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, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on LBMH go as follows:

  • LBMH's revenue growth has slightly outpaced the industry average of 3.2%. Since the same quarter one year prior, revenues slightly increased by 6.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • LBMH's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, LBMH has a quick ratio of 2.21, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Food & Staples Retailing industry and the overall market, LIBERATOR MEDICAL HLDGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
  • The gross profit margin for LIBERATOR MEDICAL HLDGS INC is rather high; currently it is at 63.25%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.67% is above that of the industry average.
  • Compared to its closing price of one year ago, LBMH's share price has jumped by 28.15%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

You can view the full analysis from the report here: Liberator Medical Holdings Ratings Report

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At the close, Cache ( CACH) was up $0.02 (2.3%) to $0.82 on light volume. Throughout the day, 114,899 shares of Cache exchanged hands as compared to its average daily volume of 255,200 shares. The stock ranged in a price between $0.80-$0.83 after having opened the day at $0.82 as compared to the previous trading day's close of $0.80.

Cache, Inc., together with its subsidiaries, operates as a mall-based and online woman's specialty retailer of apparel and accessories in the United States. Cache has a market cap of $26.7 million and is part of the services sector. Shares are down 84.2% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Cache 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 Cache as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, poor profit margins, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on CACH 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 Specialty Retail industry. The net income has significantly decreased by 393.4% when compared to the same quarter one year ago, falling from -$1.61 million to -$7.92 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 Specialty Retail industry and the overall market, CACHE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CACHE INC is currently lower than what is desirable, coming in at 31.56%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -14.64% is significantly below that of the industry average.
  • Net operating cash flow has significantly decreased to -$2.23 million or 348.05% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 86.12%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 266.66% compared to the year-earlier quarter. 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: Cache 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.

Gaiam ( GAIA) was another company that pushed the Retail industry higher today. Gaiam was up $0.24 (3.6%) to $6.94 on light volume. Throughout the day, 14,747 shares of Gaiam exchanged hands as compared to its average daily volume of 30,100 shares. The stock ranged in a price between $6.64-$6.95 after having opened the day at $6.75 as compared to the previous trading day's close of $6.70.

Gaiam has a market cap of $130.0 million and is part of the services sector. Shares are up 3.2% year-to-date as of the close of trading on Tuesday.

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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