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NEW YORK (TheStreet) -- Tessera Technologies (TSRA) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TESSERA TECHNOLOGIES INC (TSRA) a BUY. This is driven by several positive factors, 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- TSRA's very impressive revenue growth greatly exceeded the industry average of 18.9%. Since the same quarter one year prior, revenues leaped by 150.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- TSRA has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign.
- Powered by its strong earnings growth of 406.34% and other important driving factors, this stock has surged by 42.06% 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, TSRA 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 Semiconductors & Semiconductor Equipment industry. The net income increased by 253.2% when compared to the same quarter one year prior, rising from -$70.97 million to $108.70 million.
- The gross profit margin for TESSERA TECHNOLOGIES INC is rather high; currently it is at 66.49%. It has increased significantly from the same period last year. Along with this, the net profit margin of 116.45% significantly outperformed against the industry average.
- You can view the full analysis from the report here: TSRA Ratings Report