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) -- GAIN Capital Holdings (NYSE: GCAP) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, compelling growth in net income, notable return on equity and solid stock price performance. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- Since the same quarter one year prior, revenues leaped by 59.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Net operating cash flow has significantly increased by 891.96% to $51.72 million when compared to the same quarter last year.
- The net income increased by 287.1% when compared to the same quarter one year prior, rising from $4.43 million to $17.16 million.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company.
- Compared to where it was trading one year ago, GCAP is up 67.33% to its most recent closing price of 7.48. Looking ahead, although the push and pull of a bull or bear market could certainly alter the outcome, our view is that this stock's positive fundamentals give it good potential for further appreciation.