NEW YORK ( TheStreet) -- CreXus Investment (NYSE: CXS) 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, largely solid financial position with reasonable debt levels by most measures and notable return on equity. 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:
  • CXS's very impressive revenue growth greatly exceeded the industry average of 18.1%. Since the same quarter one year prior, revenues leaped by 674.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CXS 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.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 1142.1% when compared to the same quarter one year prior, rising from $3.22 million to $39.94 million.
  • CXS has underperformed the S&P 500 Index, declining 19.19% 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.

Crexus Investment Corp. operates as a specialty finance company in the United States. It acquires, manages, and finances commercial mortgage loans and commercial real estate debts, commercial mortgage-backed securities, and other commercial real estate-related assets. The company has a P/E ratio of 7.5, below the average real estate industry P/E ratio of 7.7 and below the S&P 500 P/E ratio of 17.7. CreXus Investment has a market cap of $756.2 million and is part of the financial sector and real estate industry. Shares are down 18.6% year to date as of the close of trading on Thursday.

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