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 revenue growth, solid stock price performance, growth in earnings per share, increase in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 14.1%. Since the same quarter one year prior, revenues rose by 43.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- SPEEDWAY MOTORSPORTS INC 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 year. We feel that this trend should continue. During the past fiscal year, SPEEDWAY MOTORSPORTS INC turned its bottom line around by earning $1.06 versus -$0.15 in the prior year. This year, the market expects an improvement in earnings ($1.15 versus $1.06).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Hotels, Restaurants & Leisure industry. The net income increased by 267.6% when compared to the same quarter one year prior, rising from $6.46 million to $23.75 million.
- Net operating cash flow has increased to $34.00 million or 15.65% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.55%.
Speedway Motorsports, Inc., through its subsidiaries, operates as a promoter, marketer, and sponsor of motor sports activities in the United States. The company has a P/E ratio of 8.4, below the S&P 500 P/E ratio of 17.7. Speedway Motor Sports has a market cap of $642.4 million and is part of the
industry. Shares are up 5.2% year to date as of the close of trading on Tuesday.
You can view the full
or get investment ideas from our
-- Written by a member of TheStreet RatingsStaff