Cascade Microtech Inc. Stock Upgraded (CSCD)

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) -- Cascade Microtech (Nasdaq: CSCD) 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. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.2%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 141.66% and other important driving factors, this stock has surged by 89.64% 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, CSCD should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CASCADE MICROTECH INC 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, CASCADE MICROTECH INC continued to lose money by earning -$0.26 versus -$0.57 in the prior year. This year, the market expects an improvement in earnings ($0.39 versus -$0.26).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Semiconductors & Semiconductor Equipment industry. The net income increased by 128.1% when compared to the same quarter one year prior, rising from -$5.33 million to $1.50 million.
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Cascade Microtech, Inc. designs, develops, manufactures, and markets wafer probing solutions for the electrical measurement and testing of high performance semiconductor chips. It offers engineering probe stations, analytical probes, production probe cards, and various services. The company has a P/E ratio of 16.8, below the S&P 500 P/E ratio of 17.7. Cascade Microtech has a market cap of $97.9 million and is part of the technology sector and electronics industry. Shares are up 23.8% year to date as of the close of trading on Thursday.

You can view the full Cascade Microtech 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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