3 Stocks Driving The Leisure Industry Higher

Two out of the three major indices traded up today One out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading down 0.33 points (0.0%) at 17,403 as of Wednesday, Aug. 12, 2015, 4:20 PM ET. The NYSE advances/declines ratio sits at 1,537 issues advancing vs. 1,563 declining with 108 unchanged.

The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Top gainers within the Leisure industry included Dover Motorsports ( DVD), up 1.7%, China Yida ( CNYD), up 2.1%, Ark Restaurants ( ARKR), up 3.4%, Gaming Partners International ( GPIC), up 1.5% and Asia Entertainment & Resources ( IKGH), up 2.3%.

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

Ark Restaurants ( ARKR) is one of the companies that pushed the Leisure industry higher today. Ark Restaurants was up $0.83 (3.4%) to $25.29 on light volume. Throughout the day, 1,131 shares of Ark Restaurants exchanged hands as compared to its average daily volume of 2,600 shares. The stock ranged in a price between $24.88-$25.29 after having opened the day at $25.28 as compared to the previous trading day's close of $24.46.

Ark Restaurants Corp., through its subsidiaries, owns and operates restaurants and bars in the United States. Ark Restaurants has a market cap of $86.2 million and is part of the services sector. Shares are up 8.6% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate Ark Restaurants a buy, no analysts rate it a sell, and none rate it a hold.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreet Ratings rates Ark Restaurants as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from TheStreet Ratings analysis on ARKR go as follows:

  • ARKR's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 3.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 44.8% when compared to the same quarter one year prior, rising from $2.24 million to $3.24 million.
  • ARK RESTAURANTS CORP has improved earnings per share by 41.5% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. During the past fiscal year, ARK RESTAURANTS CORP increased its bottom line by earning $1.43 versus $1.12 in the prior year.
  • The gross profit margin for ARK RESTAURANTS CORP is rather low; currently it is at 21.24%. Regardless of ARKR's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 8.02% trails the industry average.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

At the close, China Yida ( CNYD) was up $0.07 (2.1%) to $3.48 on light volume. Throughout the day, 820 shares of China Yida exchanged hands as compared to its average daily volume of 5,900 shares. The stock ranged in a price between $3.24-$3.48 after having opened the day at $3.26 as compared to the previous trading day's close of $3.41.

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 $13.0 million and is part of the services sector. Shares are up 46.3% 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.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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, disappointing return on equity and generally disappointing historical performance in the stock itself.

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. 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.
  • 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. Along with maintaining stable cash flow from operations, the firm exceeded the industry average cash flow growth rate of -16.03%.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

Dover Motorsports ( DVD) was another company that pushed the Leisure industry higher today. Dover Motorsports was up $0.04 (1.7%) to $2.35 on light volume. Throughout the day, 100 shares of Dover Motorsports exchanged hands as compared to its average daily volume of 4,200 shares. The stock ranged in a price between $2.35-$2.35 after having opened the day at $2.35 as compared to the previous trading day's close of $2.31.

Dover Motorsports, Inc., through its subsidiaries, markets and promotes motorsports entertainment in the United States. The company promotes events under the auspices of the sanctioning body in motorsports, the National Association for Stock Car Auto Racing. Dover Motorsports has a market cap of $41.9 million and is part of the services sector. Shares are down 11.5% year-to-date as of the close of trading on Tuesday. Currently there is 1 analyst who rates Dover Motorsports a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Dover Motorsports as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and increase in net income. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year.

Highlights from TheStreet Ratings analysis on DVD go as follows:

  • DVD's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 4.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • DOVER MOTORSPORTS INC has improved earnings per share by 15.4% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, DOVER MOTORSPORTS INC increased its bottom line by earning $0.08 versus $0.05 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.08).
  • DVD's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Even though the company has a strong debt-to-equity ratio, the quick ratio of 0.15 is very weak and demonstrates a lack of ability to pay short-term obligations.
  • 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, DOVER MOTORSPORTS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
  • DVD has underperformed the S&P 500 Index, declining 12.50% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.

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

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

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.

More from Markets

Cardlytics CEO: We Want to Get 5 Out of 5 Payments in the U.S.

Cardlytics CEO: We Want to Get 5 Out of 5 Payments in the U.S.

Cannabidiol Industry Gets High, Expected to Hit $2 Billion by 2022

Cannabidiol Industry Gets High, Expected to Hit $2 Billion by 2022

Dow Tumbles, Equities Struggle as Turkey Weighs on Markets

Dow Tumbles, Equities Struggle as Turkey Weighs on Markets

Why One Money Manager Is Telling Clients to Raise Cash Right Now

Why One Money Manager Is Telling Clients to Raise Cash Right Now

Constellation Brands Commits to Cannabis with Canopy Growth Move

Constellation Brands Commits to Cannabis with Canopy Growth Move