TheStreet Ratings quantitative stock model maintains a buy recommendation on Tiffany & Co. (TIF) , which is Real Money's Stock of the Day. Since the stock was upgraded to buy from hold on Oct. 27, 2016, the shares have risen by as much as 90%.
If you prefer exchange-traded funds to holding individual stocks, you may want to consider funds with a large percentage of holdings concentrated in Tiffany & Co. stock. Three of the top four funds with concentrations of Tiffany & Co. stock are rated buy including: iShares MSCI USA ESG Select ETF (SUSA) , rated A- with 2.2%, Central Securities (CET) rated A- with 1.6%, and Invesco Insider Sentiment (NFO) rated at B+ with 1.4%.
Recently, TheStreet Ratings objectively rated this stock according to its "risk adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author. TheStreet Ratings has this to say about the recommendation:
We rate TIFFANY & CO as a buy with a ratings score of B+. This is driven by multiple 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 revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, increase in net income and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing returns on equity.
Highlights from the analysis by TheStreet Ratings:
- The revenue growth came in higher than the industry average of 0.9%. Since the same quarter one year prior, revenue rose by 14.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.30, is low and is below the industry average, implying that there has been successful management of debt levels. To add to this, TIF has a quick ratio of 2.10, which demonstrates the ability of the company to cover short-term liquidity needs.
- The gross profit margin for Tiffany & Co. is rather high; currently it is at 68.21%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.77% is above that of the industry average.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 53.2% when compared to the same quarter one year prior, rising from $92.90 million to $142.30 million.
- Powered by its strong earnings growth of 54.05% and other important driving factors, this stock has surged by 46.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. We believe the stock's sharp appreciation over the last year has driven it to a price level that is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: TIF
-- Reported by Kevin Baker in Palm Beach Gardens, FL
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc. or any of its contributors