Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. NEW YORK ( TheStreet) -- Live Nation Entertainment (NYSE: LYV) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, increase in net income, good cash flow from operations and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.
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- The revenue growth came in higher than the industry average of 2.0%. Since the same quarter one year prior, revenues slightly increased by 8.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 650.00% and other important driving factors, this stock has surged by 100.65% 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, LYV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Media industry. The net income increased by 655.7% when compared to the same quarter one year prior, rising from $7.69 million to $58.13 million.
- Net operating cash flow has significantly increased by 142.27% to $109.89 million when compared to the same quarter last year. In addition, LIVE NATION ENTERTAINMENT has also vastly surpassed the industry average cash flow growth rate of 0.57%.
- LIVE NATION ENTERTAINMENT reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LIVE NATION ENTERTAINMENT reported poor results of -$0.87 versus -$0.46 in the prior year. This year, the market expects an improvement in earnings ($0.01 versus -$0.87).