Hooker Furniture Corporation Stock Downgraded (HOFT)

Tickers in this article: HOFT

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 .

NEW YORK ( TheStreet) -- Hooker Furniture Corporation (HOFT"> HOFT) has been downgraded by TheStreet Ratings from buy to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share and increase in net income. However, as a counter to these strengths, we find that the company's profit margins have been poor overall.

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Highlights from the ratings report include:

  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Despite the fact that it has already risen in the past year, there is currently no conclusive evidence that warrants the purchase or sale of this stock.
  • HOOKER FURNITURE CORP has improved earnings per share by 14.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, HOOKER FURNITURE CORP increased its bottom line by earning $0.80 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.91 versus $0.80).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. When compared to other companies in the Household Durables industry and the overall market, HOOKER FURNITURE CORP's return on equity is below that of both the industry average and the S&P 500.
  • The gross profit margin for HOOKER FURNITURE CORP is currently lower than what is desirable, coming in at 25.06%. Regardless of HOFT's low profit margin, it has managed to increase from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 3.05% trails the industry average.

MFG WOOD UNUPHOLSTERED HOUSEHOLD FURNITURE AND ENTERTAINMENT CENTER UNITS Regional - Other: General Manufacturing. Hooker Furniture has a market cap of $149.5 million and is part of the consumer goods sector and consumer durables industry. Shares are down 4.8% year to date as of the close of trading on Friday.

You can view the full Hooker Furniture Ratings Report or get investment ideas from our investment research center .