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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At the close, Nevada Gold & Casinos ( UWN) was up $0.03 (1.9%) to $1.61 on light volume. Throughout the day, 50,899 shares of Nevada Gold & Casinos exchanged hands as compared to its average daily volume of 74,400 shares. The stock ranged in a price between $1.53-$1.61 after having opened the day at $1.58 as compared to the previous trading day's close of $1.58.

Nevada Gold & Casinos, Inc., a gaming company, engages 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 $27.7 million and is part of the services sector. Shares are up 26.4% year-to-date as of the close of trading on Friday. 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 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 solid stock price performance. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on UWN go as follows:

  • UWN's revenue growth has slightly outpaced the industry average of 4.4%. 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.
  • NEVADA GOLD & CASINOS INC reported flat earnings per share in the most recent quarter. 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, NEVADA GOLD & CASINOS INC increased its bottom line by earning $0.12 versus $0.03 in the prior year.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. In comparison to the other companies in the Hotels, Restaurants & Leisure industry and the overall market, NEVADA GOLD & CASINOS 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 declined marginally to $2.38 million or 1.57% when compared to the same quarter last year. Despite a decrease in cash flow NEVADA GOLD & CASINOS INC is still fairing well by exceeding its industry average cash flow growth rate of -16.03%.

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

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Diversified Restaurant Holdings ( BAGR) was another company that pushed the Leisure industry higher today. Diversified Restaurant Holdings was up $0.06 (2.0%) to $3.06 on heavy volume. Throughout the day, 233,930 shares of Diversified Restaurant Holdings exchanged hands as compared to its average daily volume of 39,000 shares. The stock ranged in a price between $2.96-$3.23 after having opened the day at $3.05 as compared to the previous trading day's close of $3.00.

Diversified Restaurant Holdings has a market cap of $96.1 million and is part of the services sector. Shares are down 41.9% year-to-date as of the close of trading on Friday.

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.

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