NEW YORK (TheStreet) -- Compressco Partners (GSJK) shares are plummeting, down 6.3% to $28.09 in trading on Wednesday.
The stock dropped following a downgrade to "market perform" from "outperform" by analysts at Raymond James Financial (RJF - Get Report).
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Separately, TheStreet Ratings team rates COMPRESSCO PARTNERS LP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate COMPRESSCO PARTNERS LP (GSJK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, expanding profit margins and increase in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 29.03% and other important driving factors, this stock has surged by 33.45% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GSJK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- COMPRESSCO PARTNERS LP has improved earnings per share by 29.0% 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, COMPRESSCO PARTNERS LP increased its bottom line by earning $1.11 versus $1.04 in the prior year. This year, the market expects an improvement in earnings ($1.36 versus $1.11).
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.2%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 46.35% is the gross profit margin for COMPRESSCO PARTNERS LP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.56% is above that of the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the Energy Equipment & Services industry average, but is less than that of the S&P 500. The net income increased by 29.6% when compared to the same quarter one year prior, rising from $4.90 million to $6.35 million.
- You can view the full analysis from the report here: GSJK Ratings Report