NEW YORK ( TheStreet) -- Holly Corporation (NYSE: HOC) 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, impressive record of earnings per share growth, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had generally poor debt management on most measures that we evaluated. Highlights from the ratings report include:
- Powered by its strong earnings growth of 131.76% and other important driving factors, this stock has surged by 113.48% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- Net operating cash flow has increased to $47.29 million or 48.26% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 0.76%.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 136.3% when compared to the same quarter one year prior, rising from -$40.50 million to $14.72 million.
- HOLLY 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, HOLLY CORP increased its bottom line by earning $1.94 versus $0.32 in the prior year. This year, the market expects an improvement in earnings ($4.88 versus $1.94).
- The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 33.1%. Growth in the company's revenue appears to have helped boost the earnings per share.