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NEW YORK (TheStreet) -- Cresud Sacifya (CRESY) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:
"We rate CRESUD SACIFYA (CRESY) a SELL. This is driven by a few notable weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Real Estate Management & Development industry and the overall market, CRESUD SACIFYA's return on equity significantly trails that of both the industry average and the S&P 500.
- In its most recent trading session, CRESY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- CRESY, with its decline in revenue, underperformed when compared the industry average of 7.3%. Since the same quarter one year prior, revenues fell by 13.9%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- CRESUD SACIFYA has improved earnings per share by 14.3% 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, CRESUD SACIFYA reported poor results of -$2.63 versus -$0.09 in the prior year. This year, the market expects an improvement in earnings (-$1.06 versus -$2.63).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Real Estate Management & Development industry average. The net income increased by 15.0% when compared to the same quarter one year prior, going from -$17.01 million to -$14.46 million.
- You can view the full analysis from the report here: CRESY Ratings Report