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) -- Cott (NYSE: COT) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, solid stock price performance, reasonable valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.
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- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Beverages industry. The net income increased by 119.3% when compared to the same quarter one year prior, rising from -$11.90 million to $2.30 million.
- Powered by its strong earnings growth of 115.38% and other important driving factors, this stock has surged by 31.76% 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, COT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- Net operating cash flow has increased to $120.00 million or 15.49% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -2.87%.
- COTT CORP QUE 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 year. During the past fiscal year, COTT CORP QUE increased its bottom line by earning $0.49 versus $0.39 in the prior year.
-- Written by a member of TheStreet Ratings Staff