TheStreet.com Ratings provides exclusive stock, ETF and mutual fund ratings and commentary based on award-winning, proprietary tools. Its "safety first" approach to investing aims to reduce risk while seeking total return performance.
The numbers: Fiscal third-quarter net income jumped 33% to $14 million and earnings per share climbed 16% to 29 cents, restrained by a higher share count. Revenue rose 37% to $148 million. Its operating margin fell below 15% and its net margin dipped below 10%. EZCORP holds $47 million of cash reserves, amounting to a strong quick ratio of 3.5. And a debt-to-equity ratio of 0.1 indicates minimal leverage.
The stock: EZCORP has dropped 21% this year, lagging behind major U.S. indices. The stock trades at a cheap price-to-earnings ratio of 9, but the company doesn't pay dividends.The model upgraded drug maker Merck (MRK) to "buy." The numbers: Second-quarter net income fell 12% to $1.6 billion, or 74 cents a share, as revenue dropped 3% to $5.9 billion. Its operating margin increased from 26% to 28% and its net margin shrank from 29% to 26%. A quick ratio of 1.8 demonstrates ample liquidity and a debt-to-equity ratio of 0.5 indicates conservative leverage. We give Merck a financial strength score of 8.9 out of 10, higher than the "buy"-list average. The stock: Merck is up 2% this year, trailing behind major U.S. indices. The stock trades at a cheap price-to-earnings ratio of 12 and offers a 4.9% dividend yield, higher than the average of companies in the S&P 500 Index. The model upgraded insurer Old Republic International (ORI) to "hold." The numbers: In the second quarter, the company lost $16 million, or 7 cents, down from a loss of $365 million, or $1.58, in the year-earlier period. Revenue increased 80% to $913 million. Its operating and net margins remained in negative territory, but the company's financial position improved. Its cash balance has grown 63% to $1 billion since last June. And its debt-to-equity ratio is low at 0.1.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV