NEW YORK (TheStreet) -- Shares of CommScope were gaining 11.7% to $24.13 Tuesday following reports that parent company TE Connectivity is close to selling the telecom and data network equipment company. TE Connectivity is close to reaching a deal to sell CommScope for about $3 billion, according to The Wall Street Journal. The company could reportedly announce the deal as early as this week, as long as the deal doesn't fall apart. The deal to sell CommScope reportedly won't include the telecom equipment maker's subsea fiber optics operation. Subsea Communications were responsible for 2% of CommScope's net sales in the last fiscal year. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings team rates COMMSCOPE HOLDING CO INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation: "We rate COMMSCOPE HOLDING CO INC (COMM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth and notable return on equity. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet." 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. The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 12.7%. Growth in the company's revenue appears to have helped boost the earnings per share. 37.79% is the gross profit margin for COMMSCOPE HOLDING CO 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, COMM's net profit margin of 9.63% significantly trails the industry average. The debt-to-equity ratio is very high at 2.10 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Regardless of the company's weak debt-to-equity ratio, COMM has managed to keep a strong quick ratio of 2.31, which demonstrates the ability to cover short-term cash needs. You can view the full analysis from the report here: COMM 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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