NEW YORK (
) has been upgraded by TheStreet Ratings from sell to hold. 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 impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
Highlights from the ratings report include:
- 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 Professional Services industry and the overall market on the basis of return on equity, HUDSON HIGHLAND GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- Powered by its strong earnings growth of 1200.00% and other important driving factors, this stock has surged by 32.30% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
- Although HHGP's debt-to-equity ratio of 0.10 is very low, it is currently higher than that of the industry average. To add to this, HHGP has a quick ratio of 1.59, which demonstrates the ability of the company to cover short-term liquidity needs.
- The revenue growth came in higher than the industry average of 15.8%. Since the same quarter one year prior, revenues rose by 26.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
Hudson Highland Group, Inc. provides professional staffing and talent management solutions worldwide. The company offers professional staffing services on a permanent and contract consulting basis, as well as a range of talent management services to businesses operating in various industries. The company has a P/E ratio of 600, above the S&P 500 P/E ratio of 17.7. Hudson Highland Group has a market cap of $196.7 million and is part of the
industry. Shares are up 3.3% year to date as of the close of trading on Thursday.
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