NEW YORK ( TheStreet) -- Meredith Corporation (NYSE: MDP) 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, notable return on equity, attractive valuation levels, expanding profit margins and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • 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 Media industry and the overall market, MEREDITH CORP's return on equity exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 114.0% when compared to the same quarter one year prior, rising from $18.95 million to $40.56 million.
  • MEREDITH 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 year. We feel that this trend should continue. During the past fiscal year, MEREDITH CORP turned its bottom line around by earning $2.28 versus -$2.28 in the prior year. This year, the market expects an improvement in earnings ($2.73 versus $2.28).
  • MDP's revenue growth has slightly outpaced the industry average of 4.8%. Since the same quarter one year prior, revenues slightly increased by 8.9%. Growth in the company's revenue appears to have helped boost the earnings per share.

Meredith Corporation, a media and marketing company, engages in magazine and book publishing, television broadcasting, integrated marketing, and interactive media business in the United States. It operates in two segments, Publishing and Broadcasting. The company has a P/E ratio of 11.7, equal to the average media industry P/E ratio and below the S&P 500 P/E ratio of 16. Meredith has a market cap of $1.3 billion and is part of the services sector and media industry. Shares are down 1.9% year to date as of the close of trading on Wednesday.

You can view the full Meredith Ratings Report or get investment ideas from our investment research center.

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