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NEW YORK (TheStreet) -- Tuesday Morning (TUES) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate TUESDAY MORNING CORP (TUES) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TUES's revenue growth has slightly outpaced the industry average of 3.7%. Since the same quarter one year prior, revenues slightly increased by 5.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TUESDAY MORNING CORP has improved earnings per share by 31.7% 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, TUESDAY MORNING CORP continued to lose money by earning -$0.24 versus -$1.34 in the prior year. This year, the market expects an improvement in earnings ($0.36 versus -$0.24).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Multiline Retail industry. The net income increased by 33.9% when compared to the same quarter one year prior, rising from $17.67 million to $23.66 million.
- 37.19% is the gross profit margin for TUESDAY MORNING CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.84% is above that of the industry average.
- Net operating cash flow has increased to $48.32 million or 13.16% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.52%.
- You can view the full analysis from the report here: TUES Ratings Report
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