NEW YORK ( TheStreet) -- TechTarget (Nasdaq: TTGT) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and expanding profit margins. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- TECHTARGET INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, TECHTARGET INC turned its bottom line around by earning $0.11 versus -$0.03 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus $0.11).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet Software & Services industry. The net income increased by 586.7% when compared to the same quarter one year prior, rising from -$0.08 million to $0.37 million.
- TTGT's revenue growth trails the industry average of 23.1%. Since the same quarter one year prior, revenues slightly increased by 5.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The gross profit margin for TECHTARGET INC is currently very high, coming in at 71.30%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, TTGT's net profit margin of 1.50% significantly trails the industry average.
- This stock's share value has moved by only 13.65% over the past year. Looking ahead, we do not see anything in this company's numbers that would change the one-year trend. It was down over the last twelve months; and it could be down again in the next twelve. Naturally, a bull or bear market could sway the movement of this stock.
-- Written by a member of TheStreet Ratings Staff