3 Stocks Reiterated As A Buy: PCLN, AIG, V

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) -- TheStreet Ratings team reiterated 3 stocks with a buy rating on Friday based on 32 different data factors including general market action, fundamental analysis and technical indicators. The in-depth analysis of these ratings decisions goes as follows:

Priceline Group Inc:

Priceline Group (Nasdaq: PCLN) has been reiterated by TheStreet Ratings as a buy with a ratings score of A. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and good cash flow from operations. 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 ratings report include:
  • The revenue growth came in higher than the industry average of 12.6%. Since the same quarter one year prior, revenues rose by 25.0%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PRICELINE GROUP INC has improved earnings per share by 27.4% 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, PRICELINE GROUP INC increased its bottom line by earning $36.01 versus $27.71 in the prior year. This year, the market expects an improvement in earnings ($52.51 versus $36.01).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Internet & Catalog Retail industry. The net income increased by 27.5% when compared to the same quarter one year prior, rising from $832.99 million to $1,062.25 million.
  • The gross profit margin for PRICELINE GROUP INC is currently very high, coming in at 92.37%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 37.44% significantly outperformed against the industry average.
  • Net operating cash flow has increased to $1,292.13 million or 33.14% when compared to the same quarter last year. In addition, PRICELINE GROUP INC has also modestly surpassed the industry average cash flow growth rate of 24.08%.

The Priceline Group Inc. operates as an online travel company. Priceline Group has a market cap of $57.3 billion and is part of the services sector and diversified services industry. Shares are down 5.6% year-to-date as of the close of trading on Thursday.

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American International Group Inc:

American International Group (NYSE: AIG) has been reiterated by TheStreet Ratings as a buy with a ratings score of B-. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its increase in stock price during the past year, good cash flow from operations, growth in earnings per share, largely solid financial position with reasonable debt levels by most measures and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has increased to $2,716.00 million or 19.38% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -13.71%.
  • AMERICAN INTERNATIONAL GROUP's earnings per share improvement from the most recent quarter was slightly positive. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, AMERICAN INTERNATIONAL GROUP increased its bottom line by earning $6.07 versus $4.27 in the prior year. For the next year, the market is expecting a contraction of 24.1% in earnings ($4.61 versus $6.07).
  • AIG, with its decline in revenue, underperformed when compared the industry average of 26.3%. Since the same quarter one year prior, revenues slightly dropped by 3.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • Despite currently having a low debt-to-equity ratio of 0.33, it is higher than that of the industry average, inferring that management of debt levels may need to be evaluated further.

American International Group, Inc. provides insurance products and services for the commercial, institutional, and individual customers in the United States and internationally. The company operates in two segments: AIG Property Casualty, and AIG Life and Retirement. American International Group has a market cap of $75.3 billion and is part of the financial sector and insurance industry. Shares are up 5.6% year-to-date as of the close of trading on Thursday.

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Visa Inc:

Visa (NYSE: V) has been reiterated by TheStreet Ratings as a buy with a ratings score of A-. According to TheStreet Ratings team: The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company shows weak operating cash flow.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 7.6%. Since the same quarter one year prior, revenues slightly increased by 8.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • V 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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems.
  • The gross profit margin for VISA INC is rather high; currently it is at 65.56%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 33.23% significantly outperformed against the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the IT Services industry and the overall market on the basis of return on equity, VISA INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.
  • VISA INC's earnings per share declined by 7.0% 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, VISA INC increased its bottom line by earning $8.61 versus $7.58 in the prior year. This year, the market expects an improvement in earnings ($10.40 versus $8.61).

Visa Inc., a payments technology company, operates as a retail electronic payments network worldwide. The company facilitates commerce through the transfer of value and information among financial institutions, merchants, consumers, businesses, and government entities. Visa has a market cap of $123.5 billion and is part of the financial sector and financial services industry. Shares are up 12.3% year-to-date as of the close of trading on Thursday.

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