NewLink Genetics (NLNK) Upgraded From Sell to Hold
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NEW YORK (TheStreet) -- Newlink Genetics (NLNK) - Get Report has been upgraded by TheStreet Ratings from Sell to Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
TheStreet Ratings team rates NEWLINK GENETICS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate NEWLINK GENETICS CORP (NLNK) a HOLD. The primary factors that have impacted our rating are mixed some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NLNK's very impressive revenue growth greatly exceeded the industry average of 36.4%. Since the same quarter one year prior, revenues leaped by 57466.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- NLNK's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
- NEWLINK GENETICS CORP reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, NEWLINK GENETICS CORP turned its bottom line around by earning $3.19 versus -$1.24 in the prior year. For the next year, the market is expecting a contraction of 148.9% in earnings (-$1.56 versus $3.19).
- NLNK has underperformed the S&P 500 Index, declining 16.11% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- You can view the full analysis from the report here: NLNK Ratings Report