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The Specialty Retail industry as a whole closed the day down 1.1% versus the S&P 500, which was down 0.5%. Laggards within the Specialty Retail industry included Dover Saddlery ( DOVR), down 5.3%, China Auto Logistics ( CALI), down 6.9%, Books-A-Million ( BAMM), down 1.9%, Lentuo International ( LAS), down 2.3% and Rush ( RUSHB), down 2.8%.

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

Books-A-Million ( BAMM) is one of the companies that pushed the Specialty Retail industry lower today. Books-A-Million was down $0.05 (1.9%) to $2.57 on light volume. Throughout the day, 8,177 shares of Books-A-Million exchanged hands as compared to its average daily volume of 33,000 shares. The stock ranged in price between $2.51-$2.61 after having opened the day at $2.51 as compared to the previous trading day's close of $2.62.

Books-A-Million, Inc. operates as a book retailer primarily in the eastern United States. It operates in three segments: Retail Trade, Electronic Commerce Trade, and Real Estate Development and Management. Books-A-Million has a market cap of $38.5 million and is part of the services sector. Shares are up 46.0% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Books-A-Million as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and poor profit margins.

Highlights from TheStreet Ratings analysis on BAMM go as follows:

  • BOOKS-A-MILLION INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, BOOKS-A-MILLION INC swung to a loss, reporting -$0.52 versus $0.15 in the prior year.
  • The gross profit margin for BOOKS-A-MILLION INC is currently lower than what is desirable, coming in at 26.50%. Regardless of BAMM's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, BAMM's net profit margin of -6.81% significantly underperformed when compared to the industry average.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Specialty Retail industry and the overall market, BOOKS-A-MILLION INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Specialty Retail industry average. The net income increased by 0.7% when compared to the same quarter one year prior, going from -$6.94 million to -$6.89 million.
  • Compared to where it was a year ago, the stock is now trading at a higher level, and has traded in line with the S&P 500. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

You can view the full analysis from the report here: Books-A-Million Ratings Report

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At the close, China Auto Logistics ( CALI) was down $0.09 (6.9%) to $1.19 on light volume. Throughout the day, 8,923 shares of China Auto Logistics exchanged hands as compared to its average daily volume of 23,600 shares. The stock ranged in price between $1.17-$1.25 after having opened the day at $1.22 as compared to the previous trading day's close of $1.28.

China Auto Logistics Inc. sells and trades in imported automobiles in the People's Republic of China. China Auto Logistics has a market cap of $5.1 million and is part of the services sector. Shares are up 19.6% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates China Auto Logistics 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, generally high debt management risk, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CALI go as follows:

  • The debt-to-equity ratio is very high at 4.17 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. To add to this, CALI has a quick ratio of 0.64, this demonstrates the lack of ability of the company to cover short-term liquidity needs.
  • 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 Specialty Retail industry and the overall market, CHINA AUTO LOGISTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for CHINA AUTO LOGISTICS INC is currently extremely low, coming in at 1.22%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -1.91% trails that of the industry average.
  • Net operating cash flow has significantly decreased to -$23.88 million or 1049.58% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • CHINA AUTO LOGISTICS 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. The company has reported a trend of declining earnings per share over the past two years. During the past fiscal year, CHINA AUTO LOGISTICS INC reported lower earnings of $0.16 versus $0.67 in the prior year.

You can view the full analysis from the report here: China Auto Logistics Ratings Report

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Dover Saddlery ( DOVR) was another company that pushed the Specialty Retail industry lower today. Dover Saddlery was down $0.25 (5.3%) to $4.50 on light volume. Throughout the day, 100 shares of Dover Saddlery exchanged hands as compared to its average daily volume of 1,600 shares. The stock ranged in price between $4.50-$4.50 after having opened the day at $4.50 as compared to the previous trading day's close of $4.75.

Dover Saddlery, Inc. operates as a specialty retailer and omni-channel marketer of equestrian products in the United States. The company offers a selection of products required to own, ride, train, and compete with a horse. Dover Saddlery has a market cap of $25.7 million and is part of the services sector. Shares are down 2.1% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Dover Saddlery as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, unimpressive growth in net income and generally higher debt management risk.

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Highlights from TheStreet Ratings analysis on DOVR go as follows:

  • Despite its growing revenue, the company underperformed as compared with the industry average of 13.5%. Since the same quarter one year prior, revenues slightly increased by 9.1%. 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.
  • 40.34% is the gross profit margin for DOVER SADDLERY 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 0.85% trails the industry average.
  • 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. In comparison to the other companies in the Specialty Retail industry and the overall market, DOVER SADDLERY INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.42 million or 172.01% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Dover Saddlery Ratings Report

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