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.

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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

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