3 Stocks Reiterated As A Buy: JPM, CF, XOM
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
NEW YORK (TheStreet) -- TheStreet Ratings team reiterated 3 stocks with a buy rating on Tuesday based on 32 different data factors including general market action, fundamental analysis and technical indicators. The in-depth analysis of these ratings decisions goes as follows:
JPMorgan Chase & Co:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its good cash flow from operations, increase in stock price during the past year, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Net operating cash flow has significantly increased by 504.41% to $28,746.00 million when compared to the same quarter last year. In addition, JPMORGAN CHASE & CO has also vastly surpassed the industry average cash flow growth rate of 303.10%.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
- JPMORGAN CHASE & CO's earnings per share declined by 8.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, JPMORGAN CHASE & CO increased its bottom line by earning $5.29 versus $4.32 in the prior year. This year, the market expects an improvement in earnings ($5.81 versus $5.29).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, JPMORGAN CHASE & CO has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for JPMORGAN CHASE & CO is currently very high, coming in at 88.82%. Regardless of JPM's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, JPM's net profit margin of 20.20% compares favorably to the industry average.
- You can view the full analysis from the report here: JPMorgan Chase Ratings Report
JPMorgan Chase & Co., a financial holding company, provides various financial services worldwide. The company operates through four segments: Consumer & Community Banking, Corporate & Investment Bank, Commercial Banking, and Asset Management. JPMorgan Chase has a market cap of $228.5 billion and is part of the financial sector and banking industry. Shares are down 1.3% year-to-date as of the close of trading on Monday.
CF Industries Holdings Inc:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B+. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its solid stock price performance, notable return on equity, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had sub par growth in net income.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, CF's share price has jumped by 25.51%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Chemicals industry and the overall market, CF INDUSTRIES HOLDINGS INC's return on equity exceeds that of the industry average and significantly exceeds that of the S&P 500.
- Net operating cash flow has significantly increased by 517.86% to $231.70 million when compared to the same quarter last year. In addition, CF INDUSTRIES HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -5.99%.
- 44.25% is the gross profit margin for CF INDUSTRIES HOLDINGS INC which we consider to be strong. Regardless of CF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CF's net profit margin of 19.58% significantly outperformed against the industry.
- Even though the current debt-to-equity ratio is 1.09, it is still below the industry average, suggesting that this level of debt is acceptable within the Chemicals industry. Despite the fact that CF's debt-to-equity ratio is mixed in its results, the company's quick ratio of 2.32 is high and demonstrates strong liquidity.
- You can view the full analysis from the report here: CF Ratings Report
CF Industries Holdings, Inc. manufactures and distributes nitrogen fertilizer and other nitrogen products worldwide. The company's principal nitrogen fertilizer products include ammonia, granular urea, and urea ammonium nitrate solution. CF has a market cap of $14.7 billion and is part of the basic materials sector and chemicals industry. Shares are up 14.2% year-to-date as of the close of trading on Monday.
Exxon Mobil Corporation:
(NYSE:
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. According to TheStreet Ratings team: The company's strongest point has been its strong cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 18.7%. Since the same quarter one year prior, revenues fell by 17.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Oil, Gas & Consumable Fuels industry average, but is less than that of the S&P 500. The net income has decreased by 21.3% when compared to the same quarter one year ago, dropping from $8,350.00 million to $6,570.00 million.
- EXXON MOBIL CORP's earnings per share declined by 18.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, EXXON MOBIL CORP increased its bottom line by earning $7.60 versus $7.37 in the prior year. For the next year, the market is expecting a contraction of 53.6% in earnings ($3.53 versus $7.60).
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, XOM has underperformed the S&P 500 Index, declining 7.46% from its price level of one year ago. Looking ahead, although the push and pull of the overall market trend could certainly make a critical difference, we do not see any strong reason stemming from the company's fundamentals that would cause a continuation of last year's decline. In fact, the stock is now selling for less than others in its industry in relation to its current earnings.
- Net operating cash flow has decreased to $7,499.00 million or 26.53% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- You can view the full analysis from the report here: Exxon Mobil Ratings Report
Exxon Mobil Corporation explores and produces for crude oil and natural gas. As of December 31, 2013, the company had approximately 37,661 gross and 31,823 net operated wells. Exxon Mobil has a market cap of $371.4 billion and is part of the basic materials sector and energy industry. Shares are down 4.8% year-to-date as of the close of trading on Monday.
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