Jazz Pharmaceuticals PLC Stock Upgraded (JAZZ)

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) -- Jazz Pharmaceuticals (Nasdaq: JAZZ) 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, increase in net income, good cash flow from operations, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 39.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Pharmaceuticals industry average. The net income increased by 3.5% when compared to the same quarter one year prior, going from $42.19 million to $43.66 million.
  • Net operating cash flow has significantly increased by 759.31% to $74.92 million when compared to the same quarter last year. In addition, JAZZ PHARMACEUTICALS PLC has also vastly surpassed the industry average cash flow growth rate of -4.12%.
  • The gross profit margin for JAZZ PHARMACEUTICALS PLC is currently very high, coming in at 90.94%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.99% trails the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 65.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.

Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, identifies, develops, and commercializes pharmaceutical products for various medical needs in the United States, Europe, and internationally. Jazz has a market cap of $8.06 billion and is part of the health care sector and drugs industry. Shares are up 4.7% year to date as of the close of trading on Wednesday.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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

More from Markets

Netflix, IBM, Legal Pot in Canada, Mega Millions - 5 Things You Must Know

Netflix, IBM, Legal Pot in Canada, Mega Millions - 5 Things You Must Know

IBM Slides After Q3 Revenue Miss as Turnaround Stalls

IBM Slides After Q3 Revenue Miss as Turnaround Stalls

ASML Surges After Q3 Beat; Lam Research Surprises as Chipmakers Mount Comeback

ASML Surges After Q3 Beat; Lam Research Surprises as Chipmakers Mount Comeback

U.S. Earnings Power Global Stocks, Netflix Revives Tech, as Markets Extend Rally

U.S. Earnings Power Global Stocks, Netflix Revives Tech, as Markets Extend Rally

Striking Options: Earnings, Gold, & Nasdaq

Striking Options: Earnings, Gold, & Nasdaq