Colony Financial Inc Stock Upgraded (CLNY)

Editor's Note: 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

NEW YORK ( TheStreet) -- Colony Financial (NYSE: CLNY) 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, solid stock price performance, growth in earnings per share, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • CLNY's very impressive revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues leaped by 93.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 44.00% and other important driving factors, this stock has surged by 45.74% 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, CLNY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • COLONY FINANCIAL INC has improved earnings per share by 44.0% 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, COLONY FINANCIAL INC increased its bottom line by earning $1.48 versus $1.18 in the prior year. This year, the market expects an improvement in earnings ($1.56 versus $1.48).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 87.9% when compared to the same quarter one year prior, rising from $8.04 million to $15.10 million.
  • The gross profit margin for COLONY FINANCIAL INC is currently very high, coming in at 74.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 59.00% significantly outperformed against the industry average.

Colony Financial, Inc. operates as a real estate finance and investment company that focuses primarily on acquiring, originating, and managing commercial mortgage loans, and other commercial real estate-related debt investments. The company has a P/E ratio of 12.6, below the average real estate industry P/E ratio of 12.8 and below the S&P 500 P/E ratio of 17.7. Colony Financial has a market cap of $657 million and is part of the financial sector and real estate industry. Shares are up 24.3% year to date as of the close of trading on Tuesday.

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

-- Written by a member of TheStreet Ratings Staff

Editor's Note: 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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