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) -- Matador Resources (NYSE: MTDR) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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- The revenue growth greatly exceeded the industry average of 0.2%. Since the same quarter one year prior, revenues rose by 32.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
- MATADOR RESOURCES CO 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, MATADOR RESOURCES CO turned its bottom line around by earning $0.76 versus -$0.59 in the prior year. This year, the market expects an improvement in earnings ($1.28 versus $0.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 172.6% when compared to the same quarter one year prior, rising from -$21.19 million to $15.37 million.
- The gross profit margin for MATADOR RESOURCES CO is currently very high, coming in at 78.19%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.38% significantly outperformed against the industry average.
- Net operating cash flow has increased to $52.28 million or 19.07% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 5.61%.