NEW YORK ( TheStreet) -- Double Eagle Petroleum Company (Nasdaq: DBLE) 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, compelling growth in net income, reasonable valuation levels, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself. Highlights from the ratings report include:
- DBLE's very impressive revenue growth greatly exceeded the industry average of 22.7%. Since the same quarter one year prior, revenues leaped by 129.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for DOUBLE EAGLE PETROLEUM CO is rather high; currently it is at 53.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.00% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 58.18% to $6.00 million when compared to the same quarter last year. In addition, DOUBLE EAGLE PETROLEUM CO has also vastly surpassed the industry average cash flow growth rate of 3.41%.
- 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 324.1% when compared to the same quarter one year prior, rising from -$2.58 million to $5.79 million.
-- Written by a member of TheStreet RatingsStaff