Wednesday, October 29, 2014

MPLX (MPLX) Upgraded From Hold to Buy

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. aTheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock. aClick here to learn more. NEW YORK (TheStreet) -- MPLXa has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. aTheStreet Ratings Team has this to say about their recommendation: "We rate MPLX LP (MPLX) 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, largely solid financial position with reasonable debt levels by most measures, increase in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow." Must Read: Warren Buffett's 25 Favorite Stocks STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 9.6%. Growth in the company's revenue appears to have helped boost the earnings per share. The current debt-to-equity ratio, 0.54, is low and is below the industry average, implying that there has been successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.21, which illustrates the ability to avoid short-term cash problems. The gross profit margin for MPLX LP is rather high; currently it is at 54.22%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 21.50% significantly outperformed against the industry average. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Oil, Gas & Consumable Fuels industry. The net income increased by 54.8% when compared to the same quarter one year prior, rising from $18.60 million to $28.80 million. Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Oil, Gas & Consumable Fuels industry and the overall market on the basis of return on equity, MPLX LP has underperformed in comparison with the industry average, but has exceeded that of the S&P 500. You can view the full analysis from the report here: MPLX Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.


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