3 Stocks Raising The Leisure Industry Higher

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All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 140 points (0.8%) at 17,869 as of Tuesday, Feb. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,747 issues advancing vs. 1,330 declining with 126 unchanged.

The Leisure industry as a whole closed the day up 1.4% versus the S&P 500, which was up 1.1%. Top gainers within the Leisure industry included Nevada Gold & Casinos ( UWN), up 1.6%, Dover Downs Gaming & Entertainment ( DDE), up 1.9%, Frisch's Restaurants ( FRS), up 2.4%, Century Casinos ( CNTY), up 1.7% and Cosi ( COSI), up 9.6%.

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

Frisch's Restaurants ( FRS) is one of the companies that pushed the Leisure industry higher today. Frisch's Restaurants was up $0.64 (2.4%) to $27.47 on light volume. Throughout the day, 322 shares of Frisch's Restaurants exchanged hands as compared to its average daily volume of 5,400 shares. The stock ranged in a price between $26.83-$27.47 after having opened the day at $26.83 as compared to the previous trading day's close of $26.83.

Frisch's Restaurants, Inc., together with its subsidiaries, operates full service family-style restaurants under the Frisch's Big Boy name in various regions of Ohio, Kentucky, and Indiana. As of June 3, 2014, it operated 96 restaurants and licensed 25 restaurants to other operators. Frisch's Restaurants has a market cap of $141.4 million and is part of the services sector. Shares are up 2.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Frisch's Restaurants a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Frisch's Restaurants 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, increase in stock price during the past year, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on FRS go as follows:

  • The revenue growth came in higher than the industry average of 7.9%. Since the same quarter one year prior, revenues slightly increased by 2.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FRS's debt-to-equity ratio is very low at 0.06 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • FRISCH'S RESTAURANTS INC has improved earnings per share by 34.2% 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, FRISCH'S RESTAURANTS INC increased its bottom line by earning $1.85 versus $1.37 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 37.2% when compared to the same quarter one year prior, rising from $1.91 million to $2.62 million.

You can view the full analysis from the report here: Frisch's 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.

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