NEW YORK ( TheStreet) -- Andersons (Nasdaq: ANDE) 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. 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:
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Food & Staples Retailing industry and the overall market on the basis of return on equity, ANDERSONS INC has underperformed in comparison with the industry average, but has exceeded that of 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 Food & Staples Retailing industry. The net income increased by 59.2% when compared to the same quarter one year prior, rising from $16.23 million to $25.83 million.
- ANDERSONS INC 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, ANDERSONS INC increased its bottom line by earning $3.49 versus $2.09 in the prior year. This year, the market expects an improvement in earnings ($3.79 versus $3.49).
- Powered by its strong earnings growth of 57.95% and other important driving factors, this stock has surged by 45.51% 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, ANDE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The revenue growth came in higher than the industry average of 1.7%. Since the same quarter one year prior, revenues rose by 26.0%. Growth in the company's revenue appears to have helped boost the earnings per share.