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TheStreet Ratings team rates TREE.COM INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TREE.COM INC (TREE) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and growth in earnings per share. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth greatly exceeded the industry average of 25.6%. Since the same quarter one year prior, revenues rose by 10.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- Powered by its strong earnings growth of 66.66% and other important driving factors, this stock has surged by 55.70% over the past year, outperforming the rise in the S&P 500 Index during the same period. Although TREE had significant growth over the past year, our hold rating indicates that we do not recommend additional investment in this stock at the current time.
- The gross profit margin for TREE.COM INC is currently very high, coming in at 94.89%. Regardless of TREE's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, TREE's net profit margin of 0.92% is significantly lower than the industry average.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, TREE.COM INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: TREE Ratings Report