Why Revolution Lighting Technologies (RVLT) is Soaring Today

NEW YORK (TheStreet) -- Small-cap Revolution Lighting Technologies (RVLT) surged during Monday's session on the news it had been awarded a contract from the U.S. Navy to supply LED lighting technology.

The Stamford, Conn.-based business announced the U.S. Navy's Military Sealift Command would purchase 17,000 of its Seesmart-branded two- and four-foot LED tube lamps to outfit dry cargo and ammunition ships. The Military Sealift Command division provides the Navy and Department of Defense with ocean transportation of goods, navigating around 110 ships to different ports daily.

"We are honored to support the U.S. Navy on this project to implement our high-quality LED tube lamps and drive significant long-term savings," said Revolution Lighting CEO Robert V. LaPenta in a statement. "This project is one more example in a growing list of large-scale installations across a variety of public and private organizations."

Revolution Lighting shares soared 23.6% to $3.51 by mid-morning. Year to date, the stock has achieved 459.3% in gains.

Despite the growth, TheStreet Ratings team rates Revolution Lighting Technologies as a Sell with a ratings score of D-. The team has this to say about their recommendation:

"We rate Revolution Lighting Technologies (RVLT) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income and poor profit margins."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

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