NEW YORK ( TheStreet) -- Global Sources (Nasdaq: GSOL) 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. 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 ratings report include:
  • GLOBAL SOURCES LTD has improved earnings per share by 42.1% 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, GLOBAL SOURCES LTD increased its bottom line by earning $0.55 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($0.78 versus $0.55).
  • Powered by its strong earnings growth of 42.10% and other important driving factors, this stock has surged by 87.13% 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, GSOL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 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, GLOBAL SOURCES LTD's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Regardless of the somewhat mixed results with the debt-to-equity ratio, the company's quick ratio of 0.97 is weak.
  • GSOL's revenue growth has slightly outpaced the industry average of 4.7%. Since the same quarter one year prior, revenues rose by 13.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.

Global Sources Ltd. operates as a business-to-business media company that provides information and integrated marketing services in Greater China. It facilitates trade between buyers and suppliers. The company has a P/E ratio of 18.9, below the average internet industry P/E ratio of 22.2 and above the S&P 500 P/E ratio of 16.8. Global Sources has a market cap of $386.7 million and is part of the technology sector and internet industry. Shares are up 28.4% year to date as of the close of trading on Monday.

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