3 Leisure Stocks Pushing Industry Growth

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 121 points (0.7%) at 17,751 as of Wednesday, July 29, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,248 issues advancing vs. 830 declining with 135 unchanged.

The Leisure industry as a whole closed the day up 1.2% versus the S&P 500, which was up 0.7%. Top gainers within the Leisure industry included China Yida ( CNYD), up 13.1%, Country Style Cooking Restaurant Chain Co L ( CCSC), up 1.7%, Nevada Gold & Casinos ( UWN), up 6.0%, Peak Resorts ( SKIS), up 3.0% and Town Sports International Holdings ( CLUB), up 3.5%.

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

Nevada Gold & Casinos ( UWN) is one of the companies that pushed the Leisure industry higher today. Nevada Gold & Casinos was up $0.09 (6.0%) to $1.59 on light volume. Throughout the day, 31,211 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 77,200 shares. The stock ranged in a price between $1.50-$1.60 after having opened the day at $1.50 as compared to the previous trading day's close of $1.50.

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 $27.2 million and is part of the services sector. Shares are up 20.0% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Nevada Gold & Casinos a buy, no analysts rate it a sell, and none rate it a hold.

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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, solid stock price performance, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 4.9%. Since the same quarter one year prior, revenues slightly increased by 1.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displaying stagnant earnings per share.
  • UWN's debt-to-equity ratio is very low at 0.24 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, UWN has a quick ratio of 2.28, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Compared to its closing price of one year ago, UWN's share price has jumped by 35.77%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UWN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 39.97% is the gross profit margin for NEVADA GOLD & CASINOS 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 3.62% trails the industry average.

You can view the full analysis from the report here: Nevada Gold & Casinos Ratings Report

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At the close, Country Style Cooking Restaurant Chain Co L ( CCSC) was up $0.08 (1.7%) to $4.85 on light volume. Throughout the day, 803 shares of Country Style Cooking Restaurant Chain Co L exchanged hands as compared to its average daily volume of 17,900 shares. The stock ranged in a price between $4.70-$4.88 after having opened the day at $4.85 as compared to the previous trading day's close of $4.77.

Country Style Cooking Restaurant Chain Co., Ltd. operates a quick service restaurant chain in the People's Republic of China. The company specializes in serving Sichuan-style fast food over the counter. As of March 31, 2015, it owned and operated 344 restaurants. Country Style Cooking Restaurant Chain Co L has a market cap of $121.5 million and is part of the services sector. Shares are down 19.4% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Country Style Cooking Restaurant Chain Co L a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Country Style Cooking Restaurant Chain Co L as a hold. 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 and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CCSC go as follows:

  • CCSC's revenue growth has slightly outpaced the industry average of 5.0%. Since the same quarter one year prior, revenues slightly increased by 2.2%. 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.
  • CCSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.18, which clearly demonstrates the ability to cover short-term cash needs.
  • 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, COUNTRY STYLE COOK's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for COUNTRY STYLE COOK is rather low; currently it is at 22.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.35% significantly trails the industry average.

You can view the full analysis from the report here: Country Style Cooking Restaurant Chain Co L Ratings Report

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China Yida ( CNYD) was another company that pushed the Leisure industry higher today. China Yida was up $0.40 (13.1%) to $3.45 on heavy volume. Throughout the day, 11,854 shares of China Yida exchanged hands as compared to its average daily volume of 6,300 shares. The stock ranged in a price between $2.95-$3.46 after having opened the day at $2.95 as compared to the previous trading day's close of $3.05.

China Yida Holding Co., together with its subsidiaries, engages in the tourism business in Fujian and Jiangxi provinces in the People's Republic of China. China Yida has a market cap of $11.7 million and is part of the services sector. Shares are up 30.9% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate China Yida a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates China Yida as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from TheStreet Ratings analysis on CNYD go as follows:

  • The debt-to-equity ratio of 1.12 is relatively high when compared with the industry average, suggesting a need for better debt level management. Along with this, the company manages to maintain a quick ratio of 0.44, which clearly demonstrates the inability to cover short-term cash needs.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, CHINA YIDA HOLDING CO's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, CNYD has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. 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.
  • CHINA YIDA HOLDING CO has improved earnings per share by 5.9% 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, CHINA YIDA HOLDING CO reported poor results of -$5.66 versus -$4.27 in the prior year.
  • Net operating cash flow has remained constant at -$4.12 million with no significant change when compared to the same quarter last year. Even though CHINA YIDA HOLDING CO's cash flow growth was minimal, the firm managed to surpass its industry's average growth rate of -72.82%.

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

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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.