NEW YORK ( TheStreet) -- Zix Corporation (Nasdaq: ZIXI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its notable return on equity, revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance and reasonable 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 ratings report include:
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 68.44% 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, ZIXI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ZIXI's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.33, which illustrates the ability to avoid short-term cash problems.
- ZIXI's revenue growth has slightly outpaced the industry average of 20.1%. Since the same quarter one year prior, revenues rose by 24.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Compared to other companies in the Internet Software & Services industry and the overall market, ZIX CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.