Bitauto Holdings Ltd. Stock Upgraded (BITA)

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) -- Bitauto Holdings (NYSE: BITA) 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, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

  • 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 revenue growth came in higher than the industry average of 9.3%. Since the same quarter one year prior, revenues rose by 38.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • BITA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 2.56, which clearly demonstrates the ability to cover short-term cash needs.
  • 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 other companies in the Internet Software & Services industry and the overall market, BITAUTO HOLDINGS LTD -ADR's return on equity exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 115.38% and other important driving factors, this stock has surged by 360.88% 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, BITA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.

Bitauto Holdings Limited provides Internet content and marketing services for the automotive industry primarily in the People's Republic of China. The company has a P/E ratio of 57.9, above the S&P 500 P/E ratio of 17.7. Bitauto has a market cap of $1.29 billion and is part of the technology sector and internet industry. Shares are up 350% year to date as of the close of trading on Friday.

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

3x UPSIDE POTENTIAL: 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

Energy of Dip Buyers Appears to Be Dipping

Dow Industrials Post Ninth Consecutive All-Time High

Chinese Tech Stocks Fell as Uncertainty Over U.S.-China Relations Remains

This Fast-Rising China-Based Tech Stock Is a Must Buy

These 5 Stocks Are Set to Soar on Bullish Earnings