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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading up 27 points (0.2%) at 17,393 as of Tuesday, Nov. 4, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,085 issues advancing vs. 1,951 declining with 143 unchanged.

The Leisure industry as a whole closed the day up 0.4% versus the S&P 500, which was down 0.3%. Top gainers within the Leisure industry included Nevada Gold & Casinos ( UWN), up 1.6%, Premier Exhibitions ( PRXI), up 3.8%, Diversified Restaurant Holdings ( BAGR), up 4.2%, Full House Resorts ( FLL), up 1.6% and Flanigan's ( BDL), up 3.2%.

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

Diversified Restaurant Holdings ( BAGR) is one of the companies that pushed the Leisure industry higher today. Diversified Restaurant Holdings was up $0.22 (4.2%) to $5.30 on average volume. Throughout the day, 13,319 shares of Diversified Restaurant Holdings exchanged hands as compared to its average daily volume of 17,400 shares. The stock ranged in a price between $5.14-$5.30 after having opened the day at $5.24 as compared to the previous trading day's close of $5.08.

Diversified Restaurant Holdings has a market cap of $135.4 million and is part of the services sector. Shares are up 6.5% year-to-date as of the close of trading on Monday.

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At the close, Premier Exhibitions ( PRXI) was up $0.03 (3.8%) to $0.83 on average volume. Throughout the day, 66,696 shares of Premier Exhibitions exchanged hands as compared to its average daily volume of 66,600 shares. The stock ranged in a price between $0.78-$0.83 after having opened the day at $0.80 as compared to the previous trading day's close of $0.80.

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 $38.8 million and is part of the services sector. Shares are down 31.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Premier Exhibitions a buy, no analysts rate it a sell, and none rate it a hold.

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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 and disappointing return on equity.

Highlights from TheStreet Ratings analysis on PRXI go as follows:

  • PREMIER EXHIBITIONS INC's earnings have gone downhill when comparing its most recently reported quarter with the same quarter a year earlier. 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 2566.1% when compared to the same quarter one year ago, falling from -$0.06 million to -$1.65 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.
  • This stock's share value has moved by only 40.75% 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.
  • 36.48% 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 -19.92% significantly underperformed when compared to the industry average.

You can view the full analysis from the report here: Premier Exhibitions 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 $0.02 (1.6%) to $1.25 on average volume. Throughout the day, 22,493 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 17,700 shares. The stock ranged in a price between $1.21-$1.25 after having opened the day at $1.21 as compared to the previous trading day's close of $1.23.

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 $19.1 million and is part of the services sector. Shares are down 10.2% 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 revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • The revenue growth came in higher than the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The current debt-to-equity ratio, 0.42, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, UWN has a quick ratio of 1.72, which demonstrates the ability of the company to cover short-term liquidity needs.
  • 36.98% is the gross profit margin for NEVADA GOLD & CASINOS INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, UWN's net profit margin of 2.22% significantly trails the industry average.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • 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.

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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