Weyerhaeuser Co Stock Buy Recommendation Reiterated (WY)

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) -- Weyerhaeuser (NYSE: WY) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • WY's revenue growth has slightly outpaced the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 23.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 116.66% and other important driving factors, this stock has surged by 51.30% 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, WY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • WEYERHAEUSER CO 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. We feel that this trend should continue. During the past fiscal year, WEYERHAEUSER CO increased its bottom line by earning $0.72 versus $0.59 in the prior year. This year, the market expects an improvement in earnings ($1.10 versus $0.72).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 120.0% when compared to the same quarter one year prior, rising from $65.00 million to $143.00 million.
  • Net operating cash flow has significantly increased by 71.42% to $252.00 million when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 36.21%.

Weyerhaeuser Company, a forest products company, grows and harvests trees, builds homes, and manufactures forest products worldwide. It grows and harvests trees for use as lumber, other wood and building products, and pulp and paper. Weyerhaeuser has a market cap of $16.5 billion and is part of the financial sector and real estate industry. The company has a P/E ratio of 34.00, above the S&P 500 P/E ratio of 18.00. Shares are up 8.7% year to date as of the close of trading on Thursday.

You can view the full Weyerhaeuser Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

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