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) -- LIN TV Corporation (NYSE: TVL) 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, expanding profit margins, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- The revenue growth came in higher than the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 36.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The gross profit margin for LIN TV CORP is rather high; currently it is at 67.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.80% is above that of the industry average.
- Net operating cash flow has significantly increased by 60.64% to $46.22 million when compared to the same quarter last year. In addition, LIN TV CORP has also vastly surpassed the industry average cash flow growth rate of 6.53%.
- Powered by its strong earnings growth of 620.00% and other important driving factors, this stock has surged by 63.76% 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, TVL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- LIN TV 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, LIN TV CORP increased its bottom line by earning $0.88 versus $0.65 in the prior year. This year, the market expects an improvement in earnings ($1.18 versus $0.88).
-- Written by a member of TheStreet Ratings Staff