NEW YORK ( TheStreet) -- Coca-Cola Enterprises Inc (NYSE: CCE) 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, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 13.1%. Since the same quarter one year prior, revenues rose by 27.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- COCA-COLA ENTERPRISES INC has improved earnings per share by 44.3% 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, COCA-COLA ENTERPRISES INC increased its bottom line by earning $1.83 versus $1.70 in the prior year. This year, the market expects an improvement in earnings ($2.17 versus $1.83).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Beverages industry average. The net income increased by 36.5% when compared to the same quarter one year prior, rising from $208.00 million to $284.00 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Beverages industry and the overall market, COCA-COLA ENTERPRISES INC's return on equity exceeds that of both the industry average and the S&P 500.