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) -- HCA Holdings (NYSE: HCA) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
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- Powered by its strong earnings growth of 35.29% and other important driving factors, this stock has surged by 25.39% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Health Care Providers & Services industry average. The net income increased by 35.0% when compared to the same quarter one year prior, rising from $314.00 million to $424.00 million.
- Despite its growing revenue, the company underperformed as compared with the industry average of 10.4%. Since the same quarter one year prior, revenues slightly increased by 4.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- HCA HOLDINGS INC has improved earnings per share by 35.3% 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, HCA HOLDINGS INC reported lower earnings of $3.36 versus $3.49 in the prior year. This year, the market expects an improvement in earnings ($3.65 versus $3.36).
- Net operating cash flow has declined marginally to $1,226.00 million or 2.92% when compared to the same quarter last year. Despite a decrease in cash flow HCA HOLDINGS INC is still fairing well by exceeding its industry average cash flow growth rate of -26.40%.