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) -- Nexstar Broadcasting Group (Nasdaq: NXST) 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, compelling growth in net income, good cash flow from operations 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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- NXST's revenue growth has slightly outpaced the industry average of 15.9%. Since the same quarter one year prior, revenues rose by 20.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 240.90% and other important driving factors, this stock has surged by 49.36% 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, NXST should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 252.8% when compared to the same quarter one year prior, rising from -$6.26 million to $9.56 million.
- Net operating cash flow has significantly increased by 106.59% to $26.33 million when compared to the same quarter last year. In addition, NEXSTAR BROADCASTING GROUP has also vastly surpassed the industry average cash flow growth rate of 7.21%.
- The gross profit margin for NEXSTAR BROADCASTING GROUP is rather high; currently it is at 69.40%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 10.62% trails the industry average.
-- Written by a member of TheStreet Ratings Staff