NEW YORK (TheStreet) -- Shares of Tiffany & Co. are gaining, higher by 1.47% to $89.70 in early market trading on Tuesday, after the jewelry company had its rating upgraded to "outperform" from "market perform" by analysts at Wells Fargo this morning. Wells Fargo analysts said the stock has pulled back 15% and the sales slowdown should prove to be temporary. New York City-based Tiffany is a holding company that operates through its subsidiary companies to sell jewelry, timepieces, leather goods, sterling silver goods, china, crystal, stationery, fragrances and accessories. 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. Separately, TheStreet Ratings team rates TIFFANY & CO as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation: "We rate TIFFANY & CO (TIF) a BUY. This is driven by a number of 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, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: Despite its growing revenue, the company underperformed as compared with the industry average of 9.9%. Since the same quarter one year prior, revenues slightly increased by 5.3%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share. The gross profit margin for TIFFANY & CO is rather high; currently it is at 64.44%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 3.98% trails the industry average. The current debt-to-equity ratio, 0.38, is low and is below the industry average, implying that there has been successful management of debt levels. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems. TIFFANY & CO has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past two years. However, we anticipate this trend to reverse over the coming year. During the past fiscal year, TIFFANY & CO reported lower earnings of $1.40 versus $3.25 in the prior year. This year, the market expects an improvement in earnings ($4.18 versus $1.40). The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Specialty Retail industry. The net income has significantly decreased by 59.5% when compared to the same quarter one year ago, falling from $94.61 million to $38.27 million. You can view the full analysis from the report here: TIF 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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