NEW YORK (TheStreet) -- Ann Inc (ANN) has been downgraded to "perform" from "outperform," Oppenheimer said Monday. The firm said the revision was a valuation call, as the stock is trading above its average historical valuation.
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Separately, TheStreet Ratings team rates ANN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ANN INC (ANN) a BUY. This is driven by some important positives, 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 revenue growth, reasonable valuation levels, solid stock price performance, growth in earnings per share and increase in net income. 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:
- ANN's revenue growth has slightly outpaced the industry average of 6.6%. Since the same quarter one year prior, revenues slightly increased by 2.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 100.00% and other important driving factors, this stock has surged by 44.80% 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, ANN should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- ANN 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 two years. We feel that this trend should continue. During the past fiscal year, ANN INC increased its bottom line by earning $2.19 versus $2.10 in the prior year. This year, the market expects an improvement in earnings ($2.41 versus $2.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Specialty Retail industry. The net income increased by 97.5% when compared to the same quarter one year prior, rising from $2.37 million to $4.68 million.
- You can view the full analysis from the report here: ANN Ratings Report