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NEW YORK (TheStreet) -- Dct Industrial Trust (DCT) 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 DCT INDUSTRIAL TRUST INC (DCT) 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 revenue growth, solid stock price performance, compelling growth in net income and notable return on equity. We feel these strengths outweigh the fact that the company shows low profit margins."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 0.6%. Since the same quarter one year prior, revenues rose by 10.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- This stock has managed to rise its share value by 29.00% over the past twelve months. Regarding the stock's future course, although almost any stock can fall in a broad market decline, DCT should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Real Estate Investment Trusts (REITs) industry. The net income increased by 112.6% when compared to the same quarter one year prior, rising from $13.94 million to $29.64 million.
- DCT INDUSTRIAL TRUST INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, DCT INDUSTRIAL TRUST INC turned its bottom line around by earning $0.54 versus -$0.12 in the prior year. For the next year, the market is expecting a contraction of 40.7% in earnings ($0.32 versus $0.54).
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Real Estate Investment Trusts (REITs) industry and the overall market on the basis of return on equity, DCT INDUSTRIAL TRUST INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- You can view the full analysis from the report here: DCT Ratings Report