NEW YORK (TheStreet) -- SPX Corp (SPW) stock has been downgraded to "neutral," JPMorgan said Thursday. The firm said the revision was a valuation call as the stock has been the best performer in the group the past couple of quarters.
Separately, TheStreet Ratings team rates SPX CORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate SPX CORP (SPW) 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, notable return on equity 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."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 2250.00% and other important driving factors, this stock has surged by 51.30% 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, SPW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SPX 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. We feel that this trend should continue. During the past fiscal year, SPX CORP turned its bottom line around by earning $4.43 versus -$3.66 in the prior year. This year, the market expects an improvement in earnings ($5.36 versus $4.43).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 3557.5% when compared to the same quarter one year prior, rising from $8.70 million to $318.20 million.
- 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 Machinery industry and the overall market, SPX CORP's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: SPW Ratings Report