Pantry Inc Stock Upgraded (PTRY)

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) -- Pantry (Nasdaq: PTRY) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, compelling growth in net income, impressive record of earnings per share growth and notable return on equity. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated.

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Highlights from the ratings report include:
  • PTRY's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 134.61% and other important driving factors, this stock has surged by 58.99% 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, PTRY should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 Food & Staples Retailing industry. The net income increased by 136.1% when compared to the same quarter one year prior, rising from $5.94 million to $14.02 million.
  • PANTRY INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, PANTRY INC reported poor results of -$0.14 versus -$0.12 in the prior year. This year, the market expects an improvement in earnings ($0.48 versus -$0.14).
  • 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 Food & Staples Retailing industry and the overall market, PANTRY INC's return on equity significantly trails that of both the industry average and the S&P 500.

The Pantry, Inc. operates various convenience stores in the southeastern United States. Its stores provides merchandise products, including food, beverages, non-food merchandise, and various services; and fuel, and ancillary products and services. Pantry has a market cap of $445.4 million and is part of the services sector and specialty retail industry. Shares are up 18.6% year to date as of the close of trading on Tuesday.

You can view the full Pantry Ratings Report or get investment ideas from our investment research center.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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