NEW YORK (TheStreet) -- IHS (IHS) shares are down 3.7% to $133.46 on Thursday as investors have apparently reacted negatively to the news that the company will be looking to boost growth by buying companies next year.
IHS CEO Scott Key told Reuters that the company will be looking to buy" substantial, strategic assets" over the next year.
The company's last major acquisition was its $1.4 billion purchase of R.L. Polk, which owns used-car information service provider Carfax, in July 2013.
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Shares are down despite the company's positive third quarter earnings results.
TheStreet Ratings team rates IHS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate IHS INC (IHS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, good cash flow from operations, increase in net income and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: IHS Ratings Report