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NEW YORK (TheStreet) -- Park Ohio Holdings (PKOH) 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 PARK OHIO HOLDINGS CORP (PKOH) 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 revenue growth, attractive valuation levels, good cash flow from operations, solid stock price performance and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PKOH's revenue growth has slightly outpaced the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 13.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 44.92% and other important driving factors, this stock has surged by 39.29% 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, PKOH should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- PARK OHIO HOLDINGS CORP has improved earnings per share by 44.9% 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, PARK OHIO HOLDINGS CORP increased its bottom line by earning $3.31 versus $2.82 in the prior year. This year, the market expects an improvement in earnings ($4.30 versus $3.31).
- Net operating cash flow has significantly increased by 506.45% to $18.80 million when compared to the same quarter last year. In addition, PARK OHIO HOLDINGS CORP has also vastly surpassed the industry average cash flow growth rate of 27.82%.
- You can view the full analysis from the report here: PKOH Ratings Report