NEW YORK ( TheStreet) -- Wabash National Corporation (NYSE: WNC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and impressive record of earnings per share growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, weak operating cash flow and poor profit margins.

Highlights from the ratings report include:
  • WNC has underperformed the S&P 500 Index, declining 22.75% from its price level of one year ago. Looking ahead, other than the push or pull of the broad market, we do not see anything in the company's numbers that may help reverse the decline experienced over the past 12 months. Despite the past decline, the stock is still selling for more than most others in its industry.
  • Net operating cash flow has significantly decreased to -$12.49 million or 191.73% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • WABASH NATIONAL CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, WABASH NATIONAL CORP reported poor results of -$5.32 versus -$3.61 in the prior year. This year, the market expects an improvement in earnings ($0.44 versus -$5.32).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Machinery industry. The net income increased by 158.9% when compared to the same quarter one year prior, rising from -$5.60 million to $3.30 million.
  • WNC's very impressive revenue growth greatly exceeded the industry average of 38.5%. Since the same quarter one year prior, revenues leaped by 91.8%. Growth in the company's revenue appears to have helped boost the earnings per share.

Wabash National Corporation engages in the design, manufacture, and marketing of truck trailers and related transportation equipment primarily in North America. It operates through two segments, Manufacturing, and Retail and Distribution. The company has a P/E ratio of 5.6, below the S&P 500 P/E ratio of 17.7. Wabash has a market cap of $506.9 million and is part of the consumer goods sector and automotive industry. Shares are down 42.1% year to date as of the close of trading on Wednesday.

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