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NEW YORK (TheStreet) -- Calamos Asset Management (CLMS) 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 CALAMOS ASSET MANAGEMENT INC (CLMS) a BUY. This is driven by multiple 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, reasonable valuation levels, expanding profit margins, compelling growth in net income and impressive record of earnings per share growth. 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:
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. 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.
- 48.33% is the gross profit margin for CALAMOS ASSET MANAGEMENT INC which we consider to be strong. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CLMS's net profit margin of 5.30% significantly trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Capital Markets industry average. The net income increased by 24.9% when compared to the same quarter one year prior, going from $2.70 million to $3.37 million.
- CALAMOS ASSET MANAGEMENT INC has improved earnings per share by 38.5% 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 year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, CALAMOS ASSET MANAGEMENT INC increased its bottom line by earning $0.92 versus $0.88 in the prior year. For the next year, the market is expecting a contraction of 35.9% in earnings ($0.59 versus $0.92).
- You can view the full analysis from the report here: CLMS Ratings Report
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