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) -- Beasley Broadcast Group (Nasdaq: BBGI) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, revenue growth, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 52.53% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BBGI should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BEASLEY BROADCAST GROUP INC has improved earnings per share by 6.7% 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, BEASLEY BROADCAST GROUP INC increased its bottom line by earning $0.49 versus $0.44 in the prior year. This year, the market expects an improvement in earnings ($0.56 versus $0.49).
- Despite its growing revenue, the company underperformed as compared with the industry average of 9.2%. Since the same quarter one year prior, revenues slightly increased by 9.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 39.30% is the gross profit margin for BEASLEY BROADCAST GROUP INC which we consider to be strong. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.13% is above that of the industry average.
-- Written by a member of TheStreet Ratings Staff