Carrizo Oil & Gas Inc. Stock Upgraded (CRZO)

NEW YORK ( TheStreet) -- Carrizo Oil & Gas (Nasdaq: CRZO) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • CRZO's very impressive revenue growth greatly exceeded the industry average of 11.9%. Since the same quarter one year prior, revenues leaped by 83.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CARRIZO OIL & GAS 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 year. We feel that this trend should continue. During the past fiscal year, CARRIZO OIL & GAS INC increased its bottom line by earning $0.93 versus $0.36 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus $0.93).
  • 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 1182.0% when compared to the same quarter one year prior, rising from $0.74 million to $9.42 million.
  • The gross profit margin for CARRIZO OIL & GAS INC is currently very high, coming in at 80.30%. Regardless of CRZO's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, CRZO's net profit margin of 11.70% compares favorably to the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Oil, Gas & Consumable Fuels industry and the overall market, CARRIZO OIL & GAS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
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Carrizo Oil & Gas, Inc., an independent energy company, engages in the exploration, development, and production of oil and gas in the United States and the United Kingdom. The company has a P/E ratio of 29, equal to the average energy industry P/E ratio and above the S&P 500 P/E ratio of 17.7. Carrizo Oil & Gas has a market cap of $1.06 billion and is part of the basic materials sector and energy industry. Shares are up 1.4% year to date as of the close of trading on Wednesday.

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