Cobra Electronics Corporation Stock Upgraded (COBR)

NEW YORK ( TheStreet) -- Cobra Electronics Corporation (Nasdaq: COBR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 33.0%. Since the same quarter one year prior, revenues slightly increased by 0.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Powered by its strong earnings growth of 75.00% and other important driving factors, this stock has surged by 29.84% 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, COBR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • COBRA ELECTRONICS CORP 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. We feel that this trend should continue. During the past fiscal year, COBRA ELECTRONICS CORP increased its bottom line by earning $0.47 versus $0.20 in the prior year. This year, the market expects an improvement in earnings ($0.80 versus $0.47).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Household Durables industry. The net income increased by 74.5% when compared to the same quarter one year prior, rising from $0.52 million to $0.90 million.

Cobra Electronics Corporation, together with its subsidiaries, engages in the design and marketing of two-way mobile communications and mobile navigation products in the United States, Canada, and Europe. The company has a P/E ratio of 6.3, equal to the average consumer durables industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Cobra has a market cap of $26.9 million and is part of the consumer goods sector and consumer durables industry. Shares are up 7% year to date as of the close of trading on Monday.

You can view the full Cobra 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.
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Cobra Electronics Corp Stock Upgraded (COBR)