This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Why Revolution Lighting Technologies (RVLT) is Soaring Today

Stocks in this article: RVLT

NEW YORK (TheStreet) -- Small-cap Revolution Lighting Technologies (RVLT) surged during Monday's session on the news it had been awarded a contract from the U.S. Navy to supply LED lighting technology.

The Stamford, Conn.-based business announced the U.S. Navy's Military Sealift Command would purchase 17,000 of its Seesmart-branded two- and four-foot LED tube lamps to outfit dry cargo and ammunition ships. The Military Sealift Command division provides the Navy and Department of Defense with ocean transportation of goods, navigating around 110 ships to different ports daily.

"We are honored to support the U.S. Navy on this project to implement our high-quality LED tube lamps and drive significant long-term savings," said Revolution Lighting CEO Robert V. LaPenta in a statement. "This project is one more example in a growing list of large-scale installations across a variety of public and private organizations."

Revolution Lighting shares soared 23.6% to $3.51 by mid-morning. Year to date, the stock has achieved 459.3% in gains.

Despite the growth, TheStreet Ratings team rates Revolution Lighting Technologies as a Sell with a ratings score of D-. The team has this to say about their recommendation:

"We rate Revolution Lighting Technologies (RVLT) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Electrical Equipment industry. The net income has significantly decreased by 1289.2% when compared to the same quarter one year ago, falling from $0.26 million to -$3.08 million.
  • The gross profit margin for Revolution Lighting Technologies is currently lower than what is desirable, coming in at 25.67%. Regardless of RVLT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, RVLT's net profit margin of -57.97% significantly underperformed when compared to the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Electrical Equipment industry and the overall market, Revolution Lighting Technologies' return on equity significantly trails that of both the industry average and the S&P 500.
  • Revolution Lighting Technologies reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, Revolution Lighting Technologies reported poor results of -80 cents a share vs. -32 cents a share in the prior year.
  • RVLT has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Although the company had a strong debt-to-equity ratio, its quick ratio of 1.00 is somewhat weak and could be cause for future problems.
Also see: The 10 Drunkest States in America... and the 10 Most Sober.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs