NEW YORK (
-- Alto Palermo
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- The gross profit margin for ALTO PALERMO SA is currently very high, coming in at 95.30%. It has increased significantly from the same period last year. Along with this, the net profit margin of 34.10% is above that of the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, ALTO PALERMO SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
- ALTO PALERMO SA 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. During the past fiscal year, ALTO PALERMO SA turned its bottom line around by earning $0.53 versus -$0.30 in the prior year.
- Powered by its strong earnings growth of 110.00% and other important driving factors, this stock has surged by 32.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, APSA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
Alto Palermo S.A. engages in the ownership, acquisition, development, leasing, management, and operation of shopping centers, as well as residential and commercial complexes in Argentina. The company has a P/E ratio of 27.4, below the average real estate industry P/E ratio of 40.3 and above the S&P 500 P/E ratio of 17. Alto Palermo has a market cap of $457.2 million and is part of the
industry. Shares are down 8.9% year to date as of the close of trading on Tuesday.
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