3 Stocks Driving The Retail Industry Higher

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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 41.93 points (-0.2%) at 17,071 as of Monday, Sept. 29, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,274 issues advancing vs. 1,814 declining with 136 unchanged.

The Retail industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.3%. Top gainers within the Retail industry included ALCO Stores ( ALCS), up 2.4%, Appliance Recycling Centers Of America ( ARCI), up 1.8%, China Jo-Jo Drugstores ( CJJD), up 3.7%, dELiA*s ( DLIA), up 5.6% and U S Auto Parts Network ( PRTS), up 5.3%.

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

dELiA*s ( DLIA) is one of the companies that pushed the Retail industry higher today. dELiA*s was up $0.01 (5.6%) to $0.24 on light volume. Throughout the day, 594,320 shares of dELiA*s exchanged hands as compared to its average daily volume of 825,200 shares. The stock ranged in a price between $0.22-$0.26 after having opened the day at $0.24 as compared to the previous trading day's close of $0.23.

dELiA*s, Inc. operates as a multi-channel retail company, primarily marketing to teenage girls in the United States. The company sells various product categories to consumers through its Website, direct mail catalogs, and retail stores. dELiA*s has a market cap of $16.2 million and is part of the services sector. Shares are down 74.2% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate dELiA*s 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 dELiA*s 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 and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on DLIA go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Internet & Catalog Retail industry average. The net income has decreased by 12.3% when compared to the same quarter one year ago, dropping from -$12.10 million to -$13.59 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, DELIAS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DELIAS INC is rather low; currently it is at 24.91%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -52.82% is significantly below that of the industry average.
  • DLIA'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 82.40%, 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. 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.
  • DELIAS INC has improved earnings per share by 40.0% 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, DELIAS INC reported poor results of -$1.30 versus -$0.73 in the prior year.

You can view the full analysis from the report here: dELiA*s 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, China Jo-Jo Drugstores ( CJJD) was up $0.07 (3.7%) to $1.96 on light volume. Throughout the day, 24,329 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 56,500 shares. The stock ranged in a price between $1.84-$1.99 after having opened the day at $1.85 as compared to the previous trading day's close of $1.89.

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 $26.3 million and is part of the services sector. Shares are up 96.9% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate China Jo-Jo Drugstores 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 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.

Appliance Recycling Centers Of America ( ARCI) was another company that pushed the Retail industry higher today. Appliance Recycling Centers Of America was up $0.05 (1.8%) to $2.88 on light volume. Throughout the day, 8,065 shares of Appliance Recycling Centers Of America exchanged hands as compared to its average daily volume of 35,400 shares. The stock ranged in a price between $2.85-$2.91 after having opened the day at $2.91 as compared to the previous trading day's close of $2.83.

Appliance Recycling Centers of America, Inc., together with its subsidiaries, sells new household appliances through a chain of company-owned retail stores under the ApplianceSmart name. The company operates in two segments, Recycling and Retail. Appliance Recycling Centers Of America has a market cap of $16.1 million and is part of the services sector. Shares are down 2.8% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Appliance Recycling Centers Of America a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Appliance Recycling Centers Of America as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, attractive valuation levels and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income, poor profit margins and a generally disappointing performance in the stock itself.

Highlights from TheStreet Ratings analysis on ARCI go as follows:

  • ARCI's revenue growth has slightly outpaced the industry average of 0.1%. Since the same quarter one year prior, revenues slightly increased by 2.9%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Specialty Retail industry and the overall market on the basis of return on equity, APPLIANCE RECYCLING CTR AMER has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • The gross profit margin for APPLIANCE RECYCLING CTR AMER is currently lower than what is desirable, coming in at 26.64%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 1.78% trails that of the industry average.
  • 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 decreased by 22.9% when compared to the same quarter one year ago, dropping from $0.77 million to $0.59 million.

You can view the full analysis from the report here: Appliance Recycling Centers Of America 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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