Cutera Inc. Stock Upgraded (CUTR)

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) -- Cutera (Nasdaq: CUTR) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 8.3%. Since the same quarter one year prior, revenues rose by 21.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • CUTR 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 this, the company maintains a quick ratio of 5.18, which clearly demonstrates the ability to cover short-term cash needs.
  • Powered by its strong earnings growth of 233.33% and other important driving factors, this stock has surged by 43.64% 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, CUTR should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • CUTERA INC 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, CUTERA INC continued to lose money by earning -$0.46 versus -$0.73 in the prior year. This year, the market expects an improvement in earnings ($0.06 versus -$0.46).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Health Care Equipment & Supplies industry. The net income increased by 221.4% when compared to the same quarter one year prior, rising from -$0.89 million to $1.08 million.
.

Cutera, Inc., a medical device company, engages in the research, design, development, manufacture, marketing, sale, and service of laser and other energy based aesthetics systems for practitioners worldwide. Cutera has a market cap of $189.2 million and is part of the health care sector and health services industry. Shares are up 44.4% year to date as of the close of trading on Monday.

You can view the full Cutera 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.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE.
null

If you liked this article you might like

Three Activist Hedge Funds to Watch

Three Activist Hedge Funds to Watch

No Good Stock Left Behind: Cramer's 'Mad Money' Recap (Tuesday 7/25/17)

No Good Stock Left Behind: Cramer's 'Mad Money' Recap (Tuesday 7/25/17)

Hertz Global Holdings, Honeywell, PetMed Express, Allergan: 'Mad Money' Lightning Round

Hertz Global Holdings, Honeywell, PetMed Express, Allergan: 'Mad Money' Lightning Round

Daniel Plants' Voce Fund Returns 5% as Other Activist Investors Struggle

Daniel Plants' Voce Fund Returns 5% as Other Activist Investors Struggle

Cutera (CUTR) Is Strong On High Volume Today

Cutera (CUTR) Is Strong On High Volume Today