3 Stocks Raising 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 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.

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 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.

At the close, Dover Downs Gaming & Entertainment ( DDE) was up $0.02 (1.9%) to $1.07 on heavy volume. Throughout the day, 134,124 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 71,700 shares. The stock ranged in a price between $1.03-$1.08 after having opened the day at $1.07 as compared to the previous trading day's close of $1.05.

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 $17.7 million and is part of the services sector. Shares are up 26.5% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Dover Downs Gaming & Entertainment 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 Dover Downs Gaming & Entertainment 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, disappointing return on equity, weak operating cash flow and poor profit margins.

Highlights from TheStreet Ratings analysis on DDE go as follows:

  • DOVER DOWNS GAMING & ENTMT 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. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, DOVER DOWNS GAMING & ENTMT swung to a loss, reporting -$0.02 versus $0.01 in the prior year.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed against the S&P 500 and did not exceed that of the Hotels, Restaurants & Leisure industry. The net income has decreased by 23.4% when compared to the same quarter one year ago, dropping from -$0.42 million to -$0.52 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, DOVER DOWNS GAMING & ENTMT'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 $0.76 million or 82.35% 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.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 8.28%. 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 -1.12% significantly underperformed when compared to the industry average.

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

Nevada Gold & Casinos ( UWN) was another company that pushed the Leisure industry higher today. Nevada Gold & Casinos was up $0.02 (1.6%) to $1.25 on light volume. Throughout the day, 11,390 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 16,500 shares. The stock ranged in a price between $1.24-$1.28 after having opened the day at $1.28 as compared to the previous trading day's close of $1.23.

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 $20.8 million and is part of the services sector. Shares are up 2.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Nevada Gold & Casinos a buy, no analysts rate it a sell, and none rate it a hold.

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.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 7.9%. 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.

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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