Why Fortress Investment Group (FIG) Stock Is Up Today

NEW YORK (TheStreet) -- Shares of Fortress Investment Group (FIG) are up 0.67% to $6.77 after the company said that it is prioritizing investments in hotels in Japan in anticipation of a boost in tourism at the 2020 Tokyo Olympics, according to Reuters

"While there are signs that demand for accommodation is set to increase, supply of the hotel is even falling in Japan," managing director for Fortress Investment Group (Japan) Akio Yamashita told Reuters. "That is making the rental income from hotel operations very attractive."

In 2013, a 10.36 million foreigners visited Japan, a record high, according to Japan National Tourism Organization.

TheStreet Ratings team rates FORTRESS INVESTMENT GRP LLC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:

"We rate FORTRESS INVESTMENT GRP LLC (FIG) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows low profit margins."

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

  • FIG's very impressive revenue growth greatly exceeded the industry average of 2.5%. Since the same quarter one year prior, revenues leaped by 91.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, FORTRESS INVESTMENT GRP LLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • FORTRESS INVESTMENT GRP LLC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, FORTRESS INVESTMENT GRP LLC turned its bottom line around by earning $0.65 versus -$0.08 in the prior year. This year, the market expects an improvement in earnings ($0.86 versus $0.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 1603.8% when compared to the same quarter one year prior, rising from -$2.08 million to $31.22 million.
  • FIG has underperformed the S&P 500 Index, declining 11.52% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it is one of the factors that makes this stock an attractive investment.
  • You can view the full analysis from the report here: FIG Ratings Report
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