RadNet Inc Stock Upgraded (RDNT)

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) -- RadNet (Nasdaq: RDNT) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and revenue growth. However, as a counter to these strengths, we find that the growth in the company's earnings per share has not been good.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 71.42% and other important driving factors, this stock has surged by 123.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains 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 Health Care Providers & Services industry. The net income increased by 91.5% when compared to the same quarter one year prior, rising from $2.69 million to $5.14 million.
  • RDNT's revenue growth trails the industry average of 20.8%. Since the same quarter one year prior, revenues slightly increased by 1.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 81.01% to $24.54 million when compared to the same quarter last year. In addition, RADNET INC has also vastly surpassed the industry average cash flow growth rate of 10.58%.
  • RADNET 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, RADNET INC reported lower earnings of $0.06 versus $1.62 in the prior year. This year, the market expects an improvement in earnings ($0.19 versus $0.06).

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