Getty Realty Corporation Stock Downgraded (GTY)

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) -- Getty Realty Corporation (NYSE: GTY) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth and reasonable valuation levels. However, as a counter to these strengths, we find that the stock has experienced relatively poor performance when compared with the S&P 500 during the past year.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • 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 251.3% when compared to the same quarter one year prior, rising from $3.63 million to $12.74 million.
  • GTY's revenue growth trails the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 0.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • GETTY REALTY CORP 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. During the past fiscal year, GETTY REALTY CORP increased its bottom line by earning $0.39 versus $0.29 in the prior year.
  • In its most recent trading session, GTY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. When compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market, GETTY REALTY CORP's return on equity is below that of both the industry average and the S&P 500.

Owns and leases retail motor fuel and convenience store properties and petroleum distribution terminals. As of Dec. 31, 2005, the company owned 814 properties and leased 241 additional properties in 13 states located principally in the Northeast. Getty has a market cap of $622.2 million and is part of the financial sector and real estate industry. Shares are up 3.7% year to date as of the close of trading on Friday.

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

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more..
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Getty Realty Fuels Its Comeback by Filling Its Tank With More Properties

4 Eclectic Names Where I Combine Dividends With Value

REIT Value Cocktail: Mix Gas Stations, Farmland and Prisons

Free-Standing Retail REITs on a Run but Will It Last?

I'm Pumped Up About This Gas-Station REIT

I'm Pumped Up About This Gas-Station REIT