Ensco PLC Class A Stock Buy Recommendation Reiterated (ESV)
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- ESV's revenue growth has slightly outpaced the industry average of 7.1%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.40, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, ESV has a quick ratio of 1.68, which demonstrates the ability of the company to cover short-term liquidity needs.
- ENSCO PLC has improved earnings per share by 13.3% 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, ENSCO PLC increased its bottom line by earning $5.23 versus $2.91 in the prior year. This year, the market expects an improvement in earnings ($6.69 versus $5.23).
- The gross profit margin for ENSCO PLC is rather high; currently it is at 51.20%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 27.57% significantly outperformed against the industry average.
- The stock price has risen over the past year, but, despite its earnings growth and some other positive factors, it has underperformed the S&P 500 so far. 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.
--Written by a member of TheStreet Ratings Staff. Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
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