Gray Television Inc. Stock Upgraded (GTN)

NEW YORK ( TheStreet) -- Gray Television (NYSE: GTN) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and good cash flow from operations. 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:
  • The revenue growth came in higher than the industry average of 7.8%. Since the same quarter one year prior, revenues rose by 24.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 44.20% is the gross profit margin for GRAY TELEVISION INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 11.60% is above that of the industry average.
  • GRAY TELEVISION INC 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, GRAY TELEVISION INC reported lower earnings of $0.02 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($0.75 versus $0.02).
  • GTN has underperformed the S&P 500 Index, declining 20.77% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.

Gray Television, Inc. operates as a television broadcast company in the United States. The company has a P/E ratio of 11.9, below the average media industry P/E ratio of 12.7 and below the S&P 500 P/E ratio of 17.7. Gray Television has a market cap of $97.7 million and is part of the services sector and media industry. Shares are up 17.3% year to date as of the close of trading on Monday.

You can view the full Gray Television 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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