Howard Hughes Corp Stock Upgraded (HHC)

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) -- Howard Hughes (NYSE: HHC) 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, expanding profit margins and good cash flow from operations. 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:
  • HHC's revenue growth has slightly outpaced the industry average of 18.9%. Since the same quarter one year prior, revenues rose by 27.4%. 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.
  • HHC's debt-to-equity ratio is very low at 0.30 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to its closing price of one year ago, HHC's share price has jumped by 35.32%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, HHC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • 39.80% is the gross profit margin for HOWARD HUGHES CORP which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -0.85% trails the industry average.
  • Net operating cash flow has increased to $93.80 million or 45.30% when compared to the same quarter last year. Despite an increase in cash flow of 45.30%, HOWARD HUGHES CORP is still growing at a significantly lower rate than the industry average of 1932.74%.
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The Howard Hughes Corporation is a real estate investment and development company, engaging in managing, developing, and leasing commercial, residential, and mixed-use real estate. The firm invests in retail, commercial, and industrial buildings in United States. Howard Hughes has a market cap of $3.55 billion and is part of the financial sector and real estate industry. Shares are up 21.8% year to date as of the close of trading on Thursday.

You can view the full Howard Hughes 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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