NEW YORK ( TheStreet Ratings) -- Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,900 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 160 U.S. common stocks for week ending August 5, 2011. 79 stocks were upgraded and 81 stocks were downgraded by our stock model.
Rating Change #10
Continental Resources (CLR - Get Report) has been upgraded by TheStreet Ratings from hold to 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, expanding profit margins, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- The gross profit margin for CONTINENTAL RESOURCES INC is currently very high, coming in at 87.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 39.70% significantly outperformed against the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 135.1% when compared to the same quarter one year prior, rising from $101.74 million to $239.19 million.
- CONTINENTAL RESOURCES INC reported significant earnings per share improvement 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, CONTINENTAL RESOURCES INC increased its bottom line by earning $0.99 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($2.53 versus $0.99).
- The current debt-to-equity ratio, 0.45, is low and is below the industry average, implying that there has been successful management of debt levels.
- CLR's very impressive revenue growth greatly exceeded the industry average of 44.4%. Since the same quarter one year prior, revenues leaped by 115.3%. Growth in the company's revenue appears to have helped boost the earnings per share.