Symantec Corp Stock Buy Recommendation Reiterated (SYMC)

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) -- Symantec (Nasdaq: SYMC) 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, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. 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:
  • SYMC's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 4.0%. 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.
  • Compared to its closing price of one year ago, SYMC's share price has jumped by 48.93%, 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, SYMC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for SYMANTEC CORP is currently very high, coming in at 87.30%. Regardless of SYMC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, SYMC's net profit margin of 10.75% is significantly lower than the industry average.
  • SYMANTEC CORP has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, SYMANTEC CORP reported lower earnings of $1.07 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($1.89 versus $1.07).

Symantec Corporation provides security, storage, and systems management solutions to various organization and consumers worldwide. It operates in four segments: Consumer, Security and Compliance, Storage and Server Management, and Services. Symantec has a market cap of $15.6 billion and is part of the technology sector and computer software & services industry. The company has a P/E ratio of 21.00, above the S&P 500 P/E ratio of 18.00. Shares are up 18.1% year to date as of the close of trading on Friday.

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

--Written by a member of TheStreet Ratings Staff.

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