Global Sources Ltd. Stock Upgraded (GSOL)

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) -- Global Sources (Nasdaq: GSOL) 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, growth in earnings per share, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • GSOL's revenue growth has slightly outpaced the industry average of 16.0%. Since the same quarter one year prior, revenues rose by 25.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 109.09% and other important driving factors, this stock has surged by 31.14% 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, GSOL should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GLOBAL SOURCES LTD 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, GLOBAL SOURCES LTD increased its bottom line by earning $0.82 versus $0.65 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.82).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Media industry average. The net income increased by 107.0% when compared to the same quarter one year prior, rising from $3.96 million to $8.21 million.
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Global Sources Ltd. operates as a business-to-business media company primarily in greater China. It provides sourcing information to volume buyers and integrated marketing services to suppliers. The company offers trade information using online media, print media, and face-to-face events. The company has a P/E ratio of 8.6, below the S&P 500 P/E ratio of 17.7. Global Sources has a market cap of $270.1 million and is part of the technology sector and internet industry. Shares are up 22.7% year to date as of the close of trading on Wednesday.

You can view the full Global Sources 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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Global Sources Ltd. Stock Downgraded (GSOL)