NEW YORK ( TheStreet) -- Ramco-Gershenson Properties (NYSE: RPT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, compelling growth in net income and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 35.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- RAMCO-GERSHENSON PROPERTIES 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, RAMCO-GERSHENSON PROPERTIES swung to a loss, reporting -$0.48 versus $0.55 in the prior year. This year, the market expects an improvement in earnings (-$0.02 versus -$0.48).
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, RAMCO-GERSHENSON PROPERTIES underperformed against that of the industry average and is significantly less than that of the S&P 500.
- RPT has underperformed the S&P 500 Index, declining 20.67% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.