Howard Hughes Corp Stock Upgraded (HHC)

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) -- Howard Hughes (NYSE: HHC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 34.4%. Since the same quarter one year prior, revenues slightly increased by 9.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The current debt-to-equity ratio, 0.35, is low and is below the industry average, implying that there has been successful management of debt levels.
  • Powered by its strong earnings growth of 113.07% and other important driving factors, this stock has surged by 81.07% 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, HHC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Management & Development industry. The net income increased by 114.8% when compared to the same quarter one year prior, rising from -$49.41 million to $7.34 million.
  • HOWARD HUGHES CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, HOWARD HUGHES CORP reported poor results of -$4.00 versus -$2.14 in the prior year. This year, the market expects an improvement in earnings ($3.02 versus -$4.00).

The Howard Hughes Corporation, a real estate company, owns, manages, and develops commercial, residential, and mixed-use real estate in the United States. Howard Hughes has a market cap of $5.52 billion and is part of the financial sector and real estate industry. Shares are up 17.9% year to date as of the close of trading on Wednesday.

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

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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