NEW YORK (TheStreet) -- Noble Corp (NE - Get Report) shares are up 1.7% to $27.93 on Wednesday after hedge fund Fir Tree reported a 9.6% stake in the company, an increase from its 5.7% stake.
Fir Tree stated that without significant change in the drilling contractor's allocation policies, the company's shares may continue to be undervalued at its current price.
TheStreet Ratings team rates NOBLE CORP PLC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate NOBLE CORP PLC (NE) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NE's revenue growth has slightly outpaced the industry average of 20.4%. Since the same quarter one year prior, revenues rose by 21.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NOBLE CORP PLC has improved earnings per share by 31.9% 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, NOBLE CORP PLC increased its bottom line by earning $3.06 versus $2.05 in the prior year. This year, the market expects an improvement in earnings ($3.07 versus $3.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 32.8% when compared to the same quarter one year prior, rising from $176.62 million to $234.56 million.
- The gross profit margin for NOBLE CORP PLC is rather high; currently it is at 51.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.91% is above that of the industry average.
- You can view the full analysis from the report here: NE Ratings Report
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