Update (9:55 a.m.): Updated with Tuesday market open information.
The stock was rising 0.72% to $41.33 shortly after the market opened on Tuesday.
TheStreet Ratings team rates NIELSEN HOLDINGS NV as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate NIELSEN HOLDINGS NV (NLSN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, compelling growth in net income, revenue growth, solid stock price performance and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- NIELSEN HOLDINGS NV 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. We feel that this trend should continue. During the past fiscal year, NIELSEN HOLDINGS NV increased its bottom line by earning $0.65 versus $0.18 in the prior year. This year, the market expects an improvement in earnings ($2.00 versus $0.65).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Professional Services industry average. The net income increased by 27.6% when compared to the same quarter one year prior, rising from $105.00 million to $134.00 million.
- NLSN's revenue growth trails the industry average of 18.5%. Since the same quarter one year prior, revenues slightly increased by 2.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 52.17% and other important driving factors, this stock has surged by 31.99% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- The gross profit margin for NIELSEN HOLDINGS NV is rather high; currently it is at 58.69%. Regardless of NLSN's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NLSN's net profit margin of 9.66% compares favorably to the industry average.
- You can view the full analysis from the report here: NLSN Ratings Report