NEW YORK ( TheStreet) -- Susser Holdings Corporation (Nasdaq: SUSS) 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, solid stock price performance, compelling growth in net income, reasonable valuation levels and impressive record of earnings per share growth. 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 4.6%. Since the same quarter one year prior, revenues rose by 28.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 514.28% and other important driving factors, this stock has surged by 66.24% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 Food & Staples Retailing industry. The net income increased by 518.9% when compared to the same quarter one year prior, rising from -$1.27 million to $5.30 million.
- SUSSER HOLDINGS CORP reported significant earnings per share improvement 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, SUSSER HOLDINGS CORP increased its bottom line by earning $2.71 versus $0.05 in the prior year. For the next year, the market is expecting a contraction of 48.3% in earnings ($1.40 versus $2.71).
-- Written by a member of TheStreet RatingsStaff