The firm said it raised its rating on the global provider of supply chain solutions based on the company's multiple potential growth drivers and its ability to buy back more stock.
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TheStreet Ratings team rates FLEXTRONICS INTERNATIONAL as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate FLEXTRONICS INTERNATIONAL (FLEX) a BUY. This is driven by a few notable strengths, 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, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 6.2%. Since the same quarter one year prior, revenues rose by 27.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 200.00% and other important driving factors, this stock has surged by 28.53% 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, FLEX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- FLEXTRONICS INTERNATIONAL 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 year. We feel that this trend should continue. During the past fiscal year, FLEXTRONICS INTERNATIONAL increased its bottom line by earning $0.58 versus $0.45 in the prior year. This year, the market expects an improvement in earnings ($1.01 versus $0.58).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Electronic Equipment, Instruments & Components industry. The net income increased by 187.1% when compared to the same quarter one year prior, rising from -$49.32 million to $42.98 million.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Electronic Equipment, Instruments & Components industry and the overall market, FLEXTRONICS INTERNATIONAL's return on equity exceeds that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: FLEX Ratings Report