3 Stocks Raising The Leisure Industry Higher

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 242 points (1.4%) at 17,615 as of Monday, Aug. 10, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 2,351 issues advancing vs. 737 declining with 111 unchanged.

The Leisure industry as a whole closed the day down 0.2% versus the S&P 500, which was up 1.3%. Top gainers within the Leisure industry included Canterbury Park ( CPHC), up 1.5%, Diversified Restaurant Holdings ( BAGR), up 2.0%, Nevada Gold & Casinos ( UWN), up 1.9%, Cosi ( COSI), up 3.2% and Asia Entertainment & Resources ( IKGH), up 4.6%.

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

Cosi ( COSI) is one of the companies that pushed the Leisure industry higher today. Cosi was up $0.04 (3.2%) to $1.28 on average volume. Throughout the day, 124,296 shares of Cosi exchanged hands as compared to its average daily volume of 157,800 shares. The stock ranged in a price between $1.23-$1.30 after having opened the day at $1.24 as compared to the previous trading day's close of $1.24.

Cosi, Inc. owns, operates, and franchises fast-casual restaurants. The company offers food and beverage products for four dayparts comprising breakfast, lunch, snacking, and dinner. It also provides catering services for breakfast, lunch, and afternoon snacking. Cosi has a market cap of $59.1 million and is part of the services sector. Shares are down 22.0% year-to-date as of the close of trading on Friday. Currently there are no analysts who rate Cosi a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Cosi as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on COSI 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 Hotels, Restaurants & Leisure industry. The net income has significantly decreased by 38.0% when compared to the same quarter one year ago, falling from -$3.13 million to -$4.32 million.
  • Net operating cash flow has significantly decreased to -$5.95 million or 96.88% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • In its most recent trading session, COSI 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. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • COSI INC has improved earnings per share by 29.4% 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, COSI INC reported poor results of -$0.82 versus -$0.65 in the prior year.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 4.4%. Since the same quarter one year prior, revenues slightly dropped by 2.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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

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