3 Stocks Pushing The Services Sector Lower
- DXPE's revenue growth has slightly outpaced the industry average of 2.3%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
- DXP ENTERPRISES INC has improved earnings per share by 19.6% 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, DXP ENTERPRISES INC increased its bottom line by earning $3.94 versus $3.35 in the prior year. This year, the market expects an improvement in earnings ($5.19 versus $3.94).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Trading Companies & Distributors industry average, but is less than that of the S&P 500. The net income increased by 20.1% when compared to the same quarter one year prior, going from $14.07 million to $16.90 million.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 85.08% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
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