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NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
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Highlights from the ratings report include:
- ISRL's very impressive revenue growth greatly exceeded the industry average of 5.5%. Since the same quarter one year prior, revenues leaped by 55.5%. 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 Oil, Gas & Consumable Fuels industry. The net income increased by 429.9% when compared to the same quarter one year prior, rising from -$1.16 million to $3.82 million.
- Net operating cash flow has significantly increased by 73.13% to $8.27 million when compared to the same quarter last year. In addition, ISRAMCO INC has also vastly surpassed the industry average cash flow growth rate of -20.08%.
- 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 Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, ISRAMCO INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
- Powered by its strong earnings growth of 427.90% and other important driving factors, this stock has surged by 50.33% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
Isramco, Inc., an independent oil and natural gas company, engages in the exploration, development, and production of oil and natural gas properties located onshore in the United States and offshore Israel. Isramco has a market cap of $396 million and is part of the basic materials sector and energy industry. Shares are up 40.1% year to date as of the close of trading on Monday.
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