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NEW YORK (TheStreet) -- Cousins Properties (CUZ) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate COUSINS PROPERTIES INC (CUZ) 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, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 38.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 495.5% when compared to the same quarter one year prior, rising from $3.90 million to $23.22 million.
- Net operating cash flow has increased to $47.80 million or 23.63% when compared to the same quarter last year. In addition, COUSINS PROPERTIES INC has also vastly surpassed the industry average cash flow growth rate of -55.92%.
- COUSINS PROPERTIES INC reported significant earnings per share improvement 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, COUSINS PROPERTIES INC reported lower earnings of $0.12 versus $0.73 in the prior year. This year, the market expects an improvement in earnings ($0.22 versus $0.12).
- In its most recent trading session, CUZ has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: CUZ Ratings Report