3 Stocks Pushing The Leisure Industry Lower

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.

The Leisure industry as a whole closed the day down 1.6% versus the S&P 500, which was down 1.3%. Laggards within the Leisure industry included Bowl America ( BWL.A), down 2.3%, Nevada Gold & Casinos ( UWN), down 3.1%, Dover Downs Gaming & Entertainment ( DDE), down 2.2%, Chanticleer Holdings ( HOTR), down 5.3% and Century Casinos ( CNTY), down 2.0%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Chanticleer Holdings ( HOTR) is one of the companies that pushed the Leisure industry lower today. Chanticleer Holdings was down $0.10 (5.3%) to $1.80 on average volume. Throughout the day, 47,283 shares of Chanticleer Holdings exchanged hands as compared to its average daily volume of 33,200 shares. The stock ranged in price between $1.75-$2.00 after having opened the day at $1.90 as compared to the previous trading day's close of $1.90.

Chanticleer Holdings has a market cap of $13.8 million and is part of the services sector. Shares are up 10.2% year-to-date as of the close of trading on Thursday. Currently there is 1 analyst who rates Chanticleer Holdings a buy, no analysts rate it a sell, and none rate it a hold.

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At the close, Dover Downs Gaming & Entertainment ( DDE) was down $0.02 (2.2%) to $0.88 on light volume. Throughout the day, 12,754 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 57,900 shares. The stock ranged in price between $0.82-$0.90 after having opened the day at $0.84 as compared to the previous trading day's close of $0.90.

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. Dover Downs Gaming & Entertainment has a market cap of $15.0 million and is part of the services sector. Shares are up 8.4% year-to-date as of the close of trading on Thursday.

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TheStreet Ratings rates Dover Downs Gaming & Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on DDE go as follows:

  • 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, DOVER DOWNS GAMING & ENTMT's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 10.61%. Regardless of DDE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DDE's net profit margin of 1.45% is significantly lower than the industry average.
  • DOVER DOWNS GAMING & ENTMT 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, DOVER DOWNS GAMING & ENTMT reported lower earnings of $0.01 versus $0.15 in the prior year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 9.8%. Since the same quarter one year prior, revenues slightly dropped by 4.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.36 is very weak and demonstrates a lack of ability to pay short-term obligations.

You can view the full analysis from the report here: Dover Downs Gaming & Entertainment Ratings Report

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Nevada Gold & Casinos ( UWN) was another company that pushed the Leisure industry lower today. Nevada Gold & Casinos was down $0.04 (3.1%) to $1.23 on light volume. Throughout the day, 7,943 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 18,000 shares. The stock ranged in price between $1.22-$1.29 after having opened the day at $1.29 as compared to the previous trading day's close of $1.27.

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 $20.6 million and is part of the services sector. Shares are up 1.6% year-to-date as of the close of trading on Thursday.

TheStreet Ratings rates Nevada Gold & Casinos 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, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 9.8%. Since the same quarter one year prior, revenues slightly increased by 0.1%. 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, 0.35, 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 2.12, which demonstrates the ability of the company to cover short-term liquidity needs.
  • NEVADA GOLD & CASINOS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, NEVADA GOLD & CASINOS INC increased its bottom line by earning $0.03 versus $0.00 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 88.2% when compared to the same quarter one year prior, rising from $0.22 million to $0.42 million.

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.

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