3 Leisure 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 up 7 points (0.0%) at 17,673 as of Wednesday, Feb. 4, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,090 issues advancing vs. 2,000 declining with 134 unchanged.

The Leisure industry as a whole closed the day down 0.3% versus the S&P 500, which was down 0.4%. Top gainers within the Leisure industry included Full House Resorts ( FLL), up 5.3%, Chanticleer Holdings ( HOTR), up 5.6%, Ignite Restaurant Group ( IRG), up 4.3%, Renren ( RENN), up 2.3% and Ruby Tuesday ( RT), up 2.3%.

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 $0.29 (4.3%) to $7.01 on light volume. Throughout the day, 46,950 shares of Ignite Restaurant Group exchanged hands as compared to its average daily volume of 124,600 shares. The stock ranged in a price between $6.60-$7.09 after having opened the day at $6.72 as compared to the previous trading day's close of $6.72.

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 $173.2 million and is part of the services sector. Shares are down 14.6% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Ignite Restaurant Group a buy, no analysts rate it a sell, and 3 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, generally high debt management risk 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.
  • Despite the current debt-to-equity ratio of 1.64, it is still below the industry average, suggesting that this level of debt is acceptable within the Hotels, Restaurants & Leisure industry. Despite the fact that IRG's debt-to-equity ratio is mixed in its results, the company's quick ratio of 0.54 is low and demonstrates weak liquidity.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 40.89%, 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, Chanticleer Holdings ( HOTR) was up $0.10 (5.6%) to $1.92 on light volume. Throughout the day, 6,400 shares of Chanticleer Holdings exchanged hands as compared to its average daily volume of 33,500 shares. The stock ranged in a price between $1.83-$1.93 after having opened the day at $1.83 as compared to the previous trading day's close of $1.82.

Chanticleer Holdings has a market cap of $13.3 million and is part of the services sector. Shares are up 5.4% year-to-date as of the close of trading on Tuesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

Full House Resorts ( FLL) was another company that pushed the Leisure industry higher today. Full House Resorts was up $0.06 (5.3%) to $1.19 on heavy volume. Throughout the day, 59,011 shares of Full House Resorts exchanged hands as compared to its average daily volume of 34,300 shares. The stock ranged in a price between $1.14-$1.21 after having opened the day at $1.14 as compared to the previous trading day's close of $1.13.

Full House Resorts, Inc. owns, develops, manages, and invests in gaming-related enterprises. Full House Resorts has a market cap of $23.6 million and is part of the services sector. Shares are down 19.3% year-to-date as of the close of trading on Tuesday. Currently there are 2 analysts who rate Full House Resorts a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Full House Resorts as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on FLL 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 Hotels, Restaurants & Leisure industry and the overall market, FULL HOUSE RESORTS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • FLL'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 44.40%, 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.
  • FLL, with its decline in revenue, slightly underperformed the industry average of 10.8%. Since the same quarter one year prior, revenues fell by 12.1%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • FULL HOUSE RESORTS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, FULL HOUSE RESORTS INC swung to a loss, reporting -$0.21 versus $1.49 in the prior year. This year, the market expects an improvement in earnings (-$0.14 versus -$0.21).
  • 47.74% is the gross profit margin for FULL HOUSE RESORTS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -2.32% is in-line with the industry average.

You can view the full analysis from the report here: Full House Resorts 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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