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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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Highlights from the ratings report include:
- Powered by its strong earnings growth of 212.50% and other important driving factors, this stock has surged by 47.05% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, TWMC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- TRANS WORLD ENTMT CORP 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 two years. During the past fiscal year, TRANS WORLD ENTMT CORP turned its bottom line around by earning $0.06 versus -$0.99 in the prior year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 209.8% when compared to the same quarter one year prior, rising from -$2.55 million to $2.80 million.
- Although TWMC's debt-to-equity ratio of 0.02 is very low, it is currently higher than that of the industry average.
Trans World Entertainment Corporation, through its subsidiaries, operates as a specialty retailer of entertainment software products, including music, video, video games, and other related products through its retail stores and e-commerce sites in the United States. The company has a P/E ratio of 12.9, above the average specialty retail industry P/E ratio of 12.4 and below the S&P 500 P/E ratio of 17.7. Trans World Entertainment has a market cap of $97.2 million and is part of the
industry. Shares are up 22.1% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet Ratings Staff
TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.