3 Retail Stocks Pushing The 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 13.23 points (-0.1%) at 17,602 as of Wednesday, Nov. 12, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 1,590 issues advancing vs. 1,414 declining with 161 unchanged.

The Retail industry as a whole closed the day up 0.8% versus the S&P 500, which was down 0.1%. Top gainers within the Retail industry included Liberty Interactive ( LINTB), up 2.1%, China Jo-Jo Drugstores ( CJJD), up 2.7%, Gordman's Stores ( GMAN), up 1.9%, Pacific Sunwear ( PSUN), up 5.3% and Tilly's ( TLYS), up 3.5%.

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

Gordman's Stores ( GMAN) is one of the companies that pushed the Retail industry higher today. Gordman's Stores was up $0.06 (1.9%) to $3.20 on light volume. Throughout the day, 7,143 shares of Gordman's Stores exchanged hands as compared to its average daily volume of 93,500 shares. The stock ranged in a price between $3.12-$3.20 after having opened the day at $3.12 as compared to the previous trading day's close of $3.14.

Gordmans Stores, Inc. operates department stores under the Gordmans name in the United States. Its merchandise selection includes a range of apparel, footwear, and home fashions products, as well as accessories. Gordman's Stores has a market cap of $62.4 million and is part of the services sector. Shares are down 58.4% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Gordman's Stores a buy, no analysts rate it a sell, and 4 rate it a hold.

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TheStreet Ratings rates Gordman's Stores 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, generally high debt management risk, disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on GMAN go as follows:

  • GORDMANS STORES 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. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, GORDMANS STORES INC reported lower earnings of $0.42 versus $1.21 in the prior year. For the next year, the market is expecting a contraction of 148.8% in earnings (-$0.21 versus $0.42).
  • 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 Multiline Retail industry. The net income has significantly decreased by 441.4% when compared to the same quarter one year ago, falling from $0.93 million to -$3.19 million.
  • The debt-to-equity ratio of 1.34 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.24, which clearly demonstrates the inability to cover short-term cash needs.
  • 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 Multiline Retail industry and the overall market, GORDMANS STORES INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$4.59 million or 151.65% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Gordman's Stores 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 $0.05 (2.7%) to $1.90 on light volume. Throughout the day, 14,007 shares of China Jo-Jo Drugstores exchanged hands as compared to its average daily volume of 56,200 shares. The stock ranged in a price between $1.79-$1.96 after having opened the day at $1.90 as compared to the previous trading day's close of $1.85.

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 $28.0 million and is part of the services sector. Shares are up 93.7% year-to-date as of the close of trading on Tuesday. 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.

Liberty Interactive ( LINTB) was another company that pushed the Retail industry higher today. Liberty Interactive was up $0.60 (2.1%) to $28.77 on light volume. Throughout the day, 176 shares of Liberty Interactive exchanged hands as compared to its average daily volume of 800 shares. The stock ranged in a price between $28.77-$28.77 after having opened the day at $28.77 as compared to the previous trading day's close of $28.17.

Liberty Interactive has a market cap of $868.4 million and is part of the services sector. Shares are down 5.3% 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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