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) -- Bonanza Creek Energy (NYSE: BCEI) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.
- 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.
- BCEI's very impressive revenue growth greatly exceeded the industry average of 3.5%. Since the same quarter one year prior, revenues leaped by 116.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- BONANZA CREEK ENERGY INC 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, BONANZA CREEK ENERGY INC increased its bottom line by earning $1.11 versus $0.17 in the prior year. This year, the market expects an improvement in earnings ($1.92 versus $1.11).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 419.8% when compared to the same quarter one year prior, rising from $3.42 million to $17.78 million.
- The gross profit margin for BONANZA CREEK ENERGY INC is currently very high, coming in at 83.30%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 14.11% is above that of the industry average.
- Net operating cash flow has significantly increased by 157.64% to $93.42 million when compared to the same quarter last year. In addition, BONANZA CREEK ENERGY INC has also vastly surpassed the industry average cash flow growth rate of -52.15%.