Income Opportunity Realty Investors Stock Upgraded (IOT)

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) -- Income Opportunity Realty Investors (AMEX: IOT) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • IOT's very impressive revenue growth greatly exceeded the industry average of 39.8%. Since the same quarter one year prior, revenues leaped by 118.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • IOT's debt-to-equity ratio is very low at 0.15 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Powered by its strong earnings growth of 1314.28% and other important driving factors, this stock has surged by 94.76% 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, IOT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • INCOME OPPORTUNITY RLTY INVS 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. During the past fiscal year, INCOME OPPORTUNITY RLTY INVS increased its bottom line by earning $1.32 versus $0.38 in the prior 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 1141.6% when compared to the same quarter one year prior, rising from -$0.34 million to $3.55 million.

Income Opportunity Realty Investors, Inc. operates in the real estate sector in the United States. The company has a P/E ratio of 14.8, below the S&P 500 P/E ratio of 17.7. Income Opportunity Realty Investors has a market cap of $27 million and is part of the financial sector and real estate industry. Shares are up 28.3% year to date as of the close of trading on Monday.

You can view the full Income Opportunity Realty Investors Ratings Report or get investment ideas from our investment research center.

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