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) -- Ultratecha has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+. aTheStreet Ratings Team has this to say about their recommendation: "We rate ULTRATECH INC (UTEK) a SELL. This is driven by some concerns, 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. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share." 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: 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 Semiconductors & Semiconductor Equipment industry and the overall market, ULTRATECH INC's return on equity significantly trails that of both the industry average and the S&P 500. UTEK's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 27.92%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy. ULTRATECH INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, ULTRATECH INC swung to a loss, reporting -$0.50 versus $1.72 in the prior year. For the next year, the market is expecting a contraction of 21.0% in earnings (-$0.61 versus -$0.50). 40.32% is the gross profit margin for ULTRATECH INC which we consider to be strong. Regardless of UTEK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, UTEK's net profit margin of -19.56% significantly underperformed when compared to 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 Semiconductors & Semiconductor Equipment industry average. The net income increased by 14.6% when compared to the same quarter one year prior, going from -$7.75 million to -$6.62 million. You can view the full analysis from the report here: UTEK 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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