Green Plains Renewable Energy Inc. Stock Upgraded (GPRE)

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) -- Green Plains Renewable Energy (Nasdaq: GPRE) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, attractive valuation levels, good cash flow from operations and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 176.00% and other important driving factors, this stock has surged by 250.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 Oil, Gas & Consumable Fuels industry. The net income increased by 179.0% when compared to the same quarter one year prior, rising from -$7.55 million to $5.97 million.
  • Net operating cash flow has significantly increased by 54.18% to $80.91 million when compared to the same quarter last year. In addition, GREEN PLAINS RENEWABLE ENRGY has also vastly surpassed the industry average cash flow growth rate of -17.91%.
  • GREEN PLAINS RENEWABLE ENRGY 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, GREEN PLAINS RENEWABLE ENRGY reported lower earnings of $0.27 versus $1.02 in the prior year. This year, the market expects an improvement in earnings ($0.88 versus $0.27).

Green Plains Renewable Energy, Inc. engages in the production, marketing, and distribution of ethanol in the United States. It operates in four segments: Ethanol Production, Corn Oil Production, Agribusiness, and Marketing and Distribution. Green Plains Renewable Energy has a market cap of $465.4 million and is part of the basic materials sector and chemicals industry. Shares are up 94.8% year to date as of the close of trading on Wednesday.

You can view the full Green Plains Renewable Energy Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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