NEW YORK ( TheStreet) -- Pros Holdings (NYSE: PRO) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. 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:
  • The revenue growth greatly exceeded the industry average of 1.3%. Since the same quarter one year prior, revenues rose by 33.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PRO has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, PRO has a quick ratio of 2.29, which demonstrates the ability of the company to cover short-term liquidity needs.
  • Powered by its strong earnings growth of 177.77% and other important driving factors, this stock has surged by 39.34% 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, PRO should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 180.3% when compared to the same quarter one year prior, rising from -$2.41 million to $1.93 million.
  • Net operating cash flow has significantly increased by 132.70% to $2.46 million when compared to the same quarter last year. In addition, PROS HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of 6.32%.

PROS Holdings, Inc. provides pricing and margin optimization software worldwide. The company has a P/E ratio of 91.1, equal to the average computer software & services industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Pros has a market cap of $441.5 million and is part of the technology sector and computer software & services industry. Shares are up 34.7% year to date as of the close of trading on Thursday.

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