Noble Corporation Stock Upgraded (NE)

NEW YORK ( TheStreet) -- Noble Corporation (NYSE: NE) 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, expanding profit margins, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 15.0%. Since the same quarter one year prior, revenues rose by 43.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 48.80% is the gross profit margin for NOBLE CORP which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 17.80% is above that of the industry average.
  • Net operating cash flow has significantly increased by 172.59% to $432.24 million when compared to the same quarter last year. In addition, NOBLE CORP has also vastly surpassed the industry average cash flow growth rate of -5.18%.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Energy Equipment & Services industry. The net income increased by 195.5% when compared to the same quarter one year prior, rising from $54.08 million to $159.82 million.
  • NOBLE CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, NOBLE CORP reported lower earnings of $1.45 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($2.72 versus $1.45).

Noble Corporation operates as an offshore drilling contractor for the oil and gas industry. The company offers contract drilling services for oil and gas wells. The company has a P/E ratio of 20.1, below the average energy industry P/E ratio of 20.2 and above the S&P 500 P/E ratio of 17.7. Noble has a market cap of $8.71 billion and is part of the basic materials sector and energy industry. Shares are up 17.1% year to date as of the close of trading on Thursday.

You can view the full Noble Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
null

If you liked this article you might like

Market Recon: The Reflation Trade Still Lives, but Buckle Your Chinstrap

Noble Shares Tumble 7% after Paragon Abandons Settlement

Transocean Goes Deep With Shallow-Rig Fleet Sale

Crude Oil and 4 Oil Services Stocks Are Leaking Post-Election Gains

These 5 Stocks Under $10 Are Breaking Out