NEW YORK ( TheStreet) -- Macerich Company (NYSE: MAC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, compelling growth in net income and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
MAC's revenue growth has slightly outpaced the industry average of 12.2%. Since the same quarter one year prior, revenues rose by 16.4%. 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.
Net operating cash flow has increased to $107.54 million or 24.72% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -14.23%.
MACERICH CO has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, MACERICH CO increased its bottom line by earning $1.94 versus $1.73 in the prior year. For the next year, the market is expecting a contraction of 63.9% in earnings ($0.70 versus $1.94).
The Macerich Company is an independent real estate investment trust. The firm invests in the real estate markets of the United States. Macerich has a market cap of $8.66 billion and is part of the financial sector and real estate industry. Shares are up 7.7% year to date as of the close of trading on Thursday.