NEW YORK ( TheStreet) -- Multiband Corporation (Nasdaq: MBND) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, notable return on equity, attractive valuation levels and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 23.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Diversified Telecommunication Services industry and the overall market, MULTIBAND CORP's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Diversified Telecommunication Services industry. The net income increased by 214.9% when compared to the same quarter one year prior, rising from $1.17 million to $3.68 million.

Multiband Corporation, together with its subsidiaries, provides voice, data, and video services to multi-dwelling unit and single family home customers in the United States. The company operates in two segments, Home Service Provider (HSP) and Multi-Dwelling Unit (MDU). The company has a P/E ratio of 3.2, below the average telecommunications industry P/E ratio of 3.3 and below the S&P 500 P/E ratio of 17.7. Multiband has a market cap of $70.2 million and is part of the technology sector and telecommunications industry. Shares are up 17.6% year to date as of the close of trading on Monday.

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