Weingarten Realty Investors Stock Upgraded (WRI)

NEW YORK ( TheStreet) -- Weingarten Realty Investors (NYSE: WRI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, revenue growth, good cash flow from operations, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • 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 395.4% when compared to the same quarter one year prior, rising from $6.27 million to $31.04 million.
  • WRI's revenue growth trails the industry average of 17.0%. Since the same quarter one year prior, revenues slightly increased by 0.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Net operating cash flow has slightly increased to $62.05 million or 9.67% when compared to the same quarter last year. In addition, WEINGARTEN REALTY INVST has also modestly surpassed the industry average cash flow growth rate of 2.81%.
  • 36.60% is the gross profit margin for WEINGARTEN REALTY INVST which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 21.90% trails the industry average.
  • After a year of stock price fluctuations, the net result is that WRI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
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Weingarten Realty Investors operates as a real estate investment trust (REIT). The company engages in the management, acquisition, and development of real estate. It operates in two segments, Shopping Center and Industrial. Weingarten Realty Investors has a market cap of $2.93 billion and is part of the financial sector and real estate industry. Shares are up 14.6% year to date as of the close of trading on Thursday.

You can view the full Weingarten Realty Investors Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff
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