3 Stocks Boosting The Leisure 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 traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 78 points (0.4%) at 17,726 as of Tuesday, Nov. 18, 2014, 3:25 PM ET. The NYSE advances/declines ratio sits at 2,060 issues advancing vs. 970 declining with 148 unchanged.

The Leisure industry as a whole closed the day up 0.4% versus the S&P 500, which was up 0.7%. Top gainers within the Leisure industry included Chanticleer Holdings ( HOTR), up 2.5%, Country Style Cooking Restaurant Chain Co L ( CCSC), up 5.6%, Good Times Restaurants ( GTIM), up 3.5%, Ignite Restaurant Group ( IRG), up 5.9% and Marcus ( MCS), up 1.6%.

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

Ignite Restaurant Group ( IRG) is one of the companies that pushed the Leisure industry higher today. Ignite Restaurant Group was up $0.39 (5.9%) to $6.99 on heavy volume. Throughout the day, 162,254 shares of Ignite Restaurant Group exchanged hands as compared to its average daily volume of 77,100 shares. The stock ranged in a price between $6.75-$7.15 after having opened the day at $6.89 as compared to the previous trading day's close of $6.60.

Ignite Restaurant Group, Inc., a diversified restaurant company, operates a portfolio of restaurants in the United States. The company operates three restaurants under the Joe's Crab Shack, Brick House Tavern + Tap, and Romano's Macaroni Grill brands. Ignite Restaurant Group has a market cap of $179.0 million and is part of the services sector. Shares are down 45.4% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Ignite Restaurant Group a buy, no analysts rate it a sell, and 5 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 Ignite Restaurant Group as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, poor profit margins, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on IRG 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 237.1% when compared to the same quarter one year ago, falling from -$1.94 million to -$6.53 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, IGNITE RESTAURANT GROUP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for IGNITE RESTAURANT GROUP INC is currently extremely low, coming in at 8.38%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -3.03% is significantly below that of the industry average.
  • IGNITE RESTAURANT GROUP 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, IGNITE RESTAURANT GROUP INC swung to a loss, reporting -$0.26 versus $0.36 in the prior year. This year, the market expects earnings to be in line with last year (-$0.26 versus -$0.26).
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 43.50%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 212.50% 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: Ignite Restaurant Group 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, Good Times Restaurants ( GTIM) was up $0.20 (3.5%) to $6.06 on heavy volume. Throughout the day, 194,308 shares of Good Times Restaurants exchanged hands as compared to its average daily volume of 84,900 shares. The stock ranged in a price between $5.80-$6.19 after having opened the day at $5.80 as compared to the previous trading day's close of $5.86.

Good Times Restaurants, Inc., through its subsidiaries, develops, owns, operates, and franchises hamburger-oriented drive-through restaurants under the Good Times Burgers & Frozen Custard name in Colorado. It also has franchised restaurants in North Dakota and Wyoming. Good Times Restaurants has a market cap of $44.5 million and is part of the services sector. Shares are up 136.1% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Good Times Restaurants 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 Good Times Restaurants as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on GTIM go as follows:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues rose by 16.7%. 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.
  • GTIM's debt-to-equity ratio is very low at 0.01 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.21, which clearly demonstrates the ability to cover short-term cash needs.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Hotels, Restaurants & Leisure industry average. The net income increased by 15.7% when compared to the same quarter one year prior, going from $0.14 million to $0.16 million.
  • The gross profit margin for GOOD TIMES RESTAURANTS INC is rather low; currently it is at 18.36%. Regardless of GTIM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, GTIM's net profit margin of 2.13% is significantly lower than the industry average.
  • Net operating cash flow has decreased to $0.31 million or 38.09% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Good Times Restaurants 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.

Country Style Cooking Restaurant Chain Co L ( CCSC) was another company that pushed the Leisure industry higher today. Country Style Cooking Restaurant Chain Co L was up $0.30 (5.6%) to $5.64 on average volume. Throughout the day, 17,546 shares of Country Style Cooking Restaurant Chain Co L exchanged hands as compared to its average daily volume of 14,200 shares. The stock ranged in a price between $5.31-$5.64 after having opened the day at $5.32 as compared to the previous trading day's close of $5.34.

Country Style Cooking Restaurant Chain Co., Ltd. operates a quick service restaurant chain in the People's Republic of China. The company specializes in serving Sichuan-style fast food over the counter. As of March 31, 2014, it operated 303 restaurants. Country Style Cooking Restaurant Chain Co L has a market cap of $139.9 million and is part of the services sector. Shares are down 46.9% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Country Style Cooking Restaurant Chain Co L a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Country Style Cooking Restaurant Chain Co L 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CCSC go as follows:

  • The revenue growth came in higher than the industry average of 9.4%. Since the same quarter one year prior, revenues slightly increased by 4.4%. 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.
  • CCSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 3.51, which clearly demonstrates the ability to cover short-term cash needs.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, COUNTRY STYLE COOK's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COUNTRY STYLE COOK is rather low; currently it is at 24.78%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 4.54% trails that of the industry average.

You can view the full analysis from the report here: Country Style Cooking Restaurant Chain Co L 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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