3 Stocks Driving The Specialty Retail 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.

Two out of the three major indices are trading lower today with the Dow Jones Industrial Average ( ^DJI) trading down 55.52 points (-0.3%) at 17,690 as of Friday, July 31, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,938 issues advancing vs. 1,140 declining with 130 unchanged.

The Specialty Retail industry as a whole closed the day up 0.3% versus the S&P 500, which was down 0.2%. Top gainers within the Specialty Retail industry included Charles & Colvard ( CTHR), up 2.1%, Odyssey Marine Exploration ( OMEX), up 7.5%, U S Auto Parts Network ( PRTS), up 1.6%, Cencosud ( CNCO), up 2.1% and Rush ( RUSHB), up 2.0%.

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

U S Auto Parts Network ( PRTS) is one of the companies that pushed the Specialty Retail industry higher today. U S Auto Parts Network was up $0.04 (1.6%) to $2.28 on heavy volume. Throughout the day, 116,076 shares of U S Auto Parts Network exchanged hands as compared to its average daily volume of 58,800 shares. The stock ranged in a price between $2.27-$2.34 after having opened the day at $2.30 as compared to the previous trading day's close of $2.25.

U.S. Auto Parts Network, Inc., together with its subsidiaries, operates as an online retailer of automotive aftermarket parts and accessories primarily in the United States, Canada, and the Philippines. The company operates through two segments, Base USAP and AutoMD. U S Auto Parts Network has a market cap of $74.0 million and is part of the services sector. Shares are down 6.8% year-to-date as of the close of trading on Thursday. Currently there are 2 analysts who rate U S Auto Parts Network a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates U S Auto Parts Network as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, poor profit margins and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PRTS 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 Internet & Catalog Retail industry. The net income has significantly decreased by 129.8% when compared to the same quarter one year ago, falling from $0.20 million to -$0.06 million.
  • The gross profit margin for US AUTO PARTS NETWORK INC is currently lower than what is desirable, coming in at 28.12%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -0.07% trails that of the industry average.
  • Net operating cash flow has decreased to $4.55 million or 44.11% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Internet & Catalog Retail industry and the overall market, US AUTO PARTS NETWORK INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • This stock's share value has moved by only 26.29% over the past year. 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: U S Auto Parts Network Ratings Report

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