This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Three Small-Cap Financial Stocks Upgraded

Stocks in this article: UBA HALL THRD

BOSTON ( TheStreet) -- Bank of America (BAC) reports quarterly earnings today and Citigroup (C) on Monday, putting a focus on the performance of large-cap financial stocks.

TheStreet's equity model upgraded the following three small-cap financial shares, two of which have lagged behind stock-market benchmarks. They trade at discounts to rivals and offer yields as high as 5.8%, more than most large-cap financials.

3. The model upgraded TF Financial (THRD), a savings bank and mortgage lender, to "buy."

Quarter: Fourth-quarter profit more than doubled to $1.2 million, or 46 cents a share, as revenue declined 3.5%. The operating margin widened from 13% to 23%. TF has $13 million of cash and $80 million of debt, amounting to a debt-to-equity ratio of 1.1.

Stock: TF Financial has risen 1.5% during the past year, underperforming U.S. stock-market indices. It trades at a price-to-projected-earnings ratio of 9.6 and a price-to-book ratio of 0.7, 75% and 48% discounts to peer averages. The shares offer a 4.2% dividend yield.

Holders: No analysts cover TF Financial. Five of its 10 largest shareholders, four of whom are company insiders, increased their holdings during the fourth quarter. Two top shareholders retained the size of their positions and three decreased them.

2. The model upgraded insurer Hallmark Financial Services (HALL) to "buy."

Quarter: Hallmark swung to a fourth-quarter profit of $9.3 million, or 46 cents, from a loss of $2.4 million, or 12 cents, a year earlier. Revenue increased 22%. The operating margin stretched to 18%. Hallmark has $117 million of cash and $60 million of debt.

Stock: Hallmark has appreciated 43% during the past 12 months, more than the Dow Jones Industrial Average and S&P 500 Index. It sells for a price-to-projected-earnings ratio of 10 and a price-to-book ratio of 0.9, 16% and 23% discounts to peer averages.

Consensus: Of analysts following Hallmark, two advise purchasing its shares and two recommend holding them. Piper Jaffray (PJC), which rates Hallmark "buy," expects the stock to advance 41% to $14. Keefe, Bruyette & Woods (KBW) thinks it will hit $10.

1 of 2

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs