CBS Corporation Stock Buy Recommendation Reiterated (CBS)

NEW YORK (TheStreet) -- CBS Corporation (NYSE:CBS) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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Highlights from the ratings report include:

• 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
• CBS CORP 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 two years. We feel that this trend should continue. During the past fiscal year, CBS CORP increased its bottom line by earning $1.90 versus $1.05 in the prior year. This year, the market expects an improvement in earnings ($2.50 versus $1.90).
• The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 79.7% when compared to the same quarter one year prior, rising from $202.00 million to $363.00 million.
• Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 11.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
• 37.30% is the gross profit margin for CBS CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 9.30% trails the industry average.

CBS Corporation, together with its subsidiaries, operates as a mass media company in the United States and internationally. The company has a P/E ratio of 14.7, above the average media industry P/E ratio of 14.5and below the S&P 500 P/E ratio of 17.7. CBS has a market cap of $19.08 billion and is part of the services sector and media industry. Shares are up 16.3% year to date as of the close of trading on Wednesday.

You can view the full CBS Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

For more information on CBS Corporation click any of the following:

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• CBS Corporation Key Stats & Profile

• CBS Corporation Earnings

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• CBS Corporation Growth Rates

• CBS Corporation Balance Sheet

• CBS Corporation Cash Flow

• CBS Corporation Income Statement