3 Stocks Pushing The Leisure Industry Lower

The Leisure industry as a whole closed the day down 0.5% versus the S&P 500, which was up 0.1%. Laggards within the Leisure industry included Dover Downs Gaming & Entertainment ( DDE), down 2.0%, Flanigan's ( BDL), down 2.9%, Country Style Cooking Restaurant Chain Co L ( CCSC), down 2.2%, Lakes Entertainment ( LACO), down 2.0% and Luby's ( LUB), down 2.9%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Lakes Entertainment ( LACO) is one of the companies that pushed the Leisure industry lower today. Lakes Entertainment was down $0.18 (2.0%) to $8.71 on heavy volume. Throughout the day, 15,152 shares of Lakes Entertainment exchanged hands as compared to its average daily volume of 9,000 shares. The stock ranged in price between $8.46-$9.03 after having opened the day at $8.79 as compared to the previous trading day's close of $8.89.

Lakes Entertainment, Inc. develops, finances, manages, and owns casino properties in the United States. Lakes Entertainment has a market cap of $121.9 million and is part of the services sector. Shares are up 32.3% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Lakes Entertainment 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 increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and weak operating cash flow.

Highlights from TheStreet Ratings analysis on LACO go as follows:

  • LACO's revenue growth has slightly outpaced the industry average of 4.5%. Since the same quarter one year prior, revenues slightly increased by 3.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • LACO's debt-to-equity ratio is very low at 0.09 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 13.92, which clearly demonstrates the ability to cover short-term cash needs.
  • After a year of stock price fluctuations, the net result is that LACO's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, LAKES ENTERTAINMENT INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$0.98 million or 66.55% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, LAKES ENTERTAINMENT INC has marginally lower results.

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

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At the close, Country Style Cooking Restaurant Chain Co L ( CCSC) was down $0.10 (2.2%) to $4.45 on average volume. Throughout the day, 13,446 shares of Country Style Cooking Restaurant Chain Co L exchanged hands as compared to its average daily volume of 16,900 shares. The stock ranged in price between $4.36-$4.55 after having opened the day at $4.52 as compared to the previous trading day's close of $4.55.

Country Style Cooking Restaurant Chain Co., Ltd. operates a quick service restaurant chain in the People's Republic of China. The company specializes in serving Sichuan-style fast food over the counter. As of March 31, 2015, it owned and operated 344 restaurants. Country Style Cooking Restaurant Chain Co L has a market cap of $123.7 million and is part of the services sector. Shares are down 23.1% year-to-date as of the close of trading on Tuesday.

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TheStreet Ratings rates Country Style Cooking Restaurant Chain Co L 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 reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

Highlights from TheStreet Ratings analysis on CCSC go as follows:

  • CCSC's revenue growth has slightly outpaced the industry average of 4.4%. Since the same quarter one year prior, revenues slightly increased by 2.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • CCSC has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 4.18, which clearly demonstrates the ability to cover short-term cash needs.
  • The gross profit margin for COUNTRY STYLE COOK is rather low; currently it is at 22.66%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 2.35% significantly trails the industry average.
  • Net operating cash flow has decreased to $4.05 million or 36.77% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: Country Style Cooking Restaurant Chain Co L Ratings Report

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Dover Downs Gaming & Entertainment ( DDE) was another company that pushed the Leisure industry lower today. Dover Downs Gaming & Entertainment was down $0.02 (2.0%) to $0.96 on heavy volume. Throughout the day, 36,701 shares of Dover Downs Gaming & Entertainment exchanged hands as compared to its average daily volume of 15,000 shares. The stock ranged in price between $0.96-$0.99 after having opened the day at $0.97 as compared to the previous trading day's close of $0.98.

Dover Downs Gaming & Entertainment, Inc., together with its subsidiaries, operates as a gaming and entertainment resort destination in the United States. Dover Downs Gaming & Entertainment has a market cap of $17.6 million and is part of the services sector. Shares are up 18.1% year-to-date as of the close of trading on Tuesday.

TheStreet Ratings rates Dover Downs Gaming & Entertainment as a sell. The company's weaknesses can be seen in multiple areas, such as its generally disappointing historical performance in the stock itself and poor profit margins.

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Highlights from TheStreet Ratings analysis on DDE go as follows:

  • DDE has underperformed the S&P 500 Index, declining 19.68% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • The gross profit margin for DOVER DOWNS GAMING & ENTMT is currently extremely low, coming in at 10.83%. Regardless of DDE's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, DDE's net profit margin of 1.39% is significantly lower than the industry average.
  • 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. Compared to other companies in the Hotels, Restaurants & Leisure industry and the overall market, DOVER DOWNS GAMING & ENTMT's return on equity significantly trails that of both the industry average and the S&P 500.
  • DOVER DOWNS GAMING & ENTMT reported significant earnings per share improvement 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, DOVER DOWNS GAMING & ENTMT swung to a loss, reporting -$0.02 versus $0.01 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 2.0%. 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: Dover Downs Gaming & Entertainment Ratings Report

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