Move Inc. Stock Upgraded (MOVE)

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) -- Move (Nasdaq: MOVE) 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, largely solid financial position with reasonable debt levels by most measures, reasonable valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

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Highlights from the ratings report include:
  • MOVE's revenue growth trails the industry average of 33.1%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • MOVE has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.15, which illustrates the ability to avoid short-term cash problems.
  • Net operating cash flow has slightly increased to $10.32 million or 7.80% when compared to the same quarter last year. Despite an increase in cash flow, MOVE INC's average is still marginally south of the industry average growth rate of 16.26%.
  • MOVE INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, MOVE INC increased its bottom line by earning $0.12 versus $0.09 in the prior year. This year, the market expects an improvement in earnings ($0.43 versus $0.12).
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Move, Inc., together with its subsidiaries, operates an online network of Websites for real estate search, finance, and moving and home enthusiasts in North America. The company has a P/E ratio of 57.2, above the S&P 500 P/E ratio of 17.7. Move has a market cap of $382.6 million and is part of the technology sector and internet industry. Shares are up 28.5% year to date as of the close of trading on Wednesday.

You can view the full Move 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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