The Macerich Company Stock Upgraded (MAC)
NEW YORK (
)
(NYSE:
) 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, solid stock price performance, compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. 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:
- MAC's very impressive revenue growth greatly exceeded the industry average of 17.9%. Since the same quarter one year prior, revenues leaped by 86.8%. 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- 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 592.4% when compared to the same quarter one year prior, rising from $23.56 million to $163.11 million.
- The gross profit margin for MACERICH CO is rather high; currently it is at 62.60%. It has increased significantly from the same period last year. Along with this, the net profit margin of 37.70% significantly outperformed against the industry average.
- MACERICH CO 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, MACERICH CO increased its bottom line by earning $1.19 versus $0.17 in the prior year. For the next year, the market is expecting a contraction of 53.8% in earnings ($0.55 versus $1.19).
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The Macerich Company operates as a real estate investment trust (REIT) in the United States. The company has a P/E ratio of 393.3, above the average real estate industry P/E ratio of 386.6 and above the S&P 500 P/E ratio of 17.7. Macerich has a market cap of $7.14 billion and is part of the
sector and
industry. Shares are up 8.8% year to date as of the close of trading on Monday.
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-- Written by a member of TheStreet RatingsStaff
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