3 Stocks Pushing The Specialty Retail Industry Lower

The Specialty Retail industry as a whole closed the day down 0.5% versus the S&P 500, which was down 0.2%. Laggards within the Specialty Retail industry included DGSE Companies ( DGSE), down 3.3%, Mecox Lane ( MCOX), down 2.9%, Odyssey Marine Exploration ( OMEX), down 2.5%, America's Car-Mart ( CRMT), down 1.8% and XO Group ( XOXO), down 2.0%.

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

America's Car-Mart ( CRMT) is one of the companies that pushed the Specialty Retail industry lower today. America's Car-Mart was down $0.81 (1.8%) to $44.98 on light volume. Throughout the day, 20,686 shares of America's Car-Mart exchanged hands as compared to its average daily volume of 31,600 shares. The stock ranged in price between $44.06-$45.99 after having opened the day at $45.99 as compared to the previous trading day's close of $45.79.

America's Car-Mart, Inc., through its subsidiaries, operates as an automotive retailer in the United States. It primarily sells older model used vehicles and provides financing for its customers. As of April 30, 2015, the company operated 141 dealerships in the South-Central United States. America's Car-Mart has a market cap of $394.6 million and is part of the services sector. Shares are down 14.2% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate America's Car-Mart a buy, 1 analyst rates it a sell, and 2 rate it a hold.

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TheStreet Ratings rates America's Car-Mart as a buy. 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, solid stock price performance, impressive record of earnings per share growth and increase in net income. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from TheStreet Ratings analysis on CRMT go as follows:

  • CRMT's revenue growth has slightly outpaced the industry average of 8.7%. Since the same quarter one year prior, revenues rose by 12.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.46, is low and is below the industry average, implying that there has been successful management of debt levels.
  • The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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.
  • AMERICA'S CAR-MART INC has improved earnings per share by 19.1% 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. During the past fiscal year, AMERICA'S CAR-MART INC increased its bottom line by earning $3.25 versus $2.24 in the prior year. This year, the market expects an improvement in earnings ($3.60 versus $3.25).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Specialty Retail industry average. The net income increased by 14.9% when compared to the same quarter one year prior, going from $6.30 million to $7.24 million.

You can view the full analysis from the report here: America's Car-Mart Ratings Report

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At the close, Odyssey Marine Exploration ( OMEX) was down $0.01 (2.5%) to $0.35 on average volume. Throughout the day, 185,278 shares of Odyssey Marine Exploration exchanged hands as compared to its average daily volume of 246,900 shares. The stock ranged in price between $0.34-$0.39 after having opened the day at $0.38 as compared to the previous trading day's close of $0.36.

Odyssey Marine Exploration, Inc., together with its subsidiaries, engages in the seafloor mineral exploration, and search and recovery of deep-ocean shipwrecks worldwide. Odyssey Marine Exploration has a market cap of $33.4 million and is part of the services sector. Shares are down 61.3% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates Odyssey Marine Exploration a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Odyssey Marine Exploration as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from TheStreet Ratings analysis on OMEX go as follows:

  • OMEX's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 71.66%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • OMEX, with its very weak revenue results, has greatly underperformed against the industry average of 4.8%. Since the same quarter one year prior, revenues plummeted by 79.7%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • ODYSSEY MARINE EXPLORATION has improved earnings per share by 8.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ODYSSEY MARINE EXPLORATION reported poor results of -$0.32 versus -$0.14 in the prior year. This year, the market expects an improvement in earnings (-$0.20 versus -$0.32).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Professional Services industry average. The net income increased by 0.9% when compared to the same quarter one year prior, going from -$9.80 million to -$9.71 million.
  • Net operating cash flow has significantly increased by 57.63% to -$4.31 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 10.57%.

You can view the full analysis from the report here: Odyssey Marine Exploration Ratings Report

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Mecox Lane ( MCOX) was another company that pushed the Specialty Retail industry lower today. Mecox Lane was down $0.10 (2.9%) to $3.30 on light volume. Throughout the day, 1,538 shares of Mecox Lane exchanged hands as compared to its average daily volume of 8,100 shares. The stock ranged in price between $3.25-$3.30 after having opened the day at $3.29 as compared to the previous trading day's close of $3.40.

Mecox Lane has a market cap of $42.9 million and is part of the services sector. Shares are down 8.8% year-to-date as of the close of trading on Monday.

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