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"We rate PHOENIX COMPANIES INC (PNX) 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 solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, reasonable valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Powered by its strong earnings growth of 58.09% and other important driving factors, this stock has surged by 38.94% 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, PNX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PHOENIX COMPANIES INC 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, PHOENIX COMPANIES INC turned its bottom line around by earning $1.20 versus -$26.56 in the prior year. This year, the market expects an improvement in earnings ($10.02 versus $1.20).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 56.4% when compared to the same quarter one year prior, rising from -$32.80 million to -$14.30 million.
- 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 Insurance industry and the overall market on the basis of return on equity, PHOENIX COMPANIES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- You can view the full analysis from the report here: PNX Ratings Report