NEW YORK ( TheStreet) -- Supreme Industries (AMEX: STS) 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, revenue growth and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company shows low profit margins. Highlights from the ratings report include:
- Powered by its strong earnings growth of 342.85% and other important driving factors, this stock has surged by 47.88% 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, STS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- SUPREME INDUSTRIES 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, SUPREME INDUSTRIES INC turned its bottom line around by earning $0.09 versus -$0.60 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 Machinery industry. The net income increased by 287.5% when compared to the same quarter one year prior, rising from -$1.36 million to $2.56 million.
- STS's revenue growth trails the industry average of 28.2%. Since the same quarter one year prior, revenues slightly increased by 6.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
-- Written by a member of TheStreet RatingsStaff