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) -- Calamos Asset Management (Nasdaq: CLMS) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, increase in net income, attractive valuation levels, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen 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 Capital Markets industry. The net income increased by 135.7% when compared to the same quarter one year prior, rising from $4.61 million to $10.86 million.
- Net operating cash flow has increased to $43.79 million or 14.12% when compared to the same quarter last year. Despite an increase in cash flow of 14.12%, CALAMOS ASSET MANAGEMENT INC is still growing at a significantly lower rate than the industry average of 119.00%.
- The gross profit margin for CALAMOS ASSET MANAGEMENT INC is rather high; currently it is at 54.96%. Regardless of CLMS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 16.31% trails the industry average.