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. TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. Click here to learn more.
NEW YORK (TheStreet) -- Equity Lifestyle Properties (ELS) 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 EQUITY LIFESTYLE PROPERTIES (ELS) a BUY. This is driven by some important positives, 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 solid stock price performance, impressive record of earnings per share growth, revenue growth and notable return on equity. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 410.00% and other important driving factors, this stock has surged by 30.54% 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, ELS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- EQUITY LIFESTYLE PROPERTIES 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, EQUITY LIFESTYLE PROPERTIES increased its bottom line by earning $0.75 versus $0.54 in the prior year. This year, the market expects an improvement in earnings ($1.42 versus $0.75).
- Despite its growing revenue, the company underperformed as compared with the industry average of 8.9%. Since the same quarter one year prior, revenues slightly increased by 7.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, EQUITY LIFESTYLE PROPERTIES has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for EQUITY LIFESTYLE PROPERTIES is currently lower than what is desirable, coming in at 30.87%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of 13.90% significantly trails the industry average.
- You can view the full analysis from the report here: ELS Ratings Report