NEW YORK ( TheStreet) -- Global Partners (NYSE: GLP) 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, good cash flow from operations and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- GLP's very impressive revenue growth greatly exceeded the industry average of 36.3%. Since the same quarter one year prior, revenues leaped by 143.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 237.2% when compared to the same quarter one year prior, rising from $0.55 million to $1.86 million.
- Net operating cash flow has significantly increased by 162.86% to $52.51 million when compared to the same quarter last year. In addition, GLOBAL PARTNERS LP has also vastly surpassed the industry average cash flow growth rate of 29.76%.
- GLOBAL PARTNERS LP 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. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, GLOBAL PARTNERS LP reported lower earnings of $1.76 versus $2.53 in the prior year. For the next year, the market is expecting a contraction of 55.1% in earnings ($0.79 versus $1.76).
- GLP has underperformed the S&P 500 Index, declining 18.23% from its price level of one year ago. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.