Why Corporate Resource Services (CRSS) Stock Is Soaring Today

NEW YORK (TheStreet) -- Shares of Corporate Resource Services Inc.  (CRRS) are jumping 4.60% to $2.73 after the diversified staffing and consulting firm announced it has reached an all-time high of weekly sales in excess of $20 million, and is on track to exceed $1 billion in revenue for 2014.

CRS cited several major contracts it secured throughout the U.S. and the U.K. that have positioned it to exceed projections.

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Separately, TheStreet Ratings team rates CORPORATE RESOURCE SVCS INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:

"We rate CORPORATE RESOURCE SVCS INC (CRRS) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. 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 and notable return on equity. However, as a counter to these strengths, we find that the company's profit margins have been poor overall."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 11.4%. Since the same quarter one year prior, revenues rose by 36.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The debt-to-equity ratio is somewhat low, currently at 0.66, and is less than that of the industry average, implying that there has been a relatively successful effort in the management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.01, which illustrates the ability to avoid short-term cash problems.
  • CORPORATE RESOURCE SVCS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, CORPORATE RESOURCE SVCS INC reported poor results of -$0.03 versus $0.00 in the prior year.
  • Powered by its strong earnings growth of 250.00% and other important driving factors, this stock has surged by 77.57% over the past year, outperforming the rise in the S&P 500 Index during the same period. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • The gross profit margin for CORPORATE RESOURCE SVCS INC is currently extremely low, coming in at 12.40%. Regardless of CRRS's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 2.10% trails the industry average.
  • You can view the full analysis from the report here: CRRS Ratings Report
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