Adams Golf Inc. Stock Upgraded (ADGF)

NEW YORK ( TheStreet) -- Adams Golf (Nasdaq: ADGF) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, largely solid financial position with reasonable debt levels by most measures and attractive valuation levels. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 390.00% and other important driving factors, this stock has surged by 96.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ADGF should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ADAMS GOLF INC 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. During the past fiscal year, ADAMS GOLF INC increased its bottom line by earning $1.79 versus $0.61 in the prior year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Leisure Equipment & Products industry. The net income increased by 440.3% when compared to the same quarter one year prior, rising from -$2.06 million to $7.02 million.
  • ADGF 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. To add to this, ADGF has a quick ratio of 2.11, which demonstrates the ability of the company to cover short-term liquidity needs.
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Adams Golf, Inc., together with its subsidiaries, designs, assembles, markets, and distributes golf clubs for various skill levels primarily in the United States and internationally. The company has a P/E ratio of six, below the average consumer durables industry P/E ratio of 11.4 and below the S&P 500 P/E ratio of 17.7. Adams has a market cap of $58.5 million and is part of the consumer goods sector and consumer durables industry. Shares are up 67% year to date as of the close of trading on Tuesday.

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