NEW YORK ( TheStreet Ratings) - Every trading day TheStreet Ratings' stock model reviews the investment ratings on around 4,900 U.S. traded stocks for potential upgrades or downgrades based on the latest available financial results and trading activity.
TheStreet Ratings released rating changes on 64 U.S. common stocks for week ending May 27, 2011. 26 stocks were upgraded and 38 stocks were downgraded by our stock model.
Monarch Financial Holdings (MNRK - Get Report) 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, impressive record of earnings per share growth, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.Highlights from the ratings report include:
- 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. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, MONARCH FINANCIAL HLDGS INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- The gross profit margin for MONARCH FINANCIAL HLDGS INC is currently very high, coming in at 84.90%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MNRK's net profit margin of 7.10% significantly trails the industry average.
- MONARCH FINANCIAL HLDGS INC has improved earnings per share by 23.1% 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 year. We feel that this trend should continue. During the past fiscal year, MONARCH FINANCIAL HLDGS INC increased its bottom line by earning $0.75 versus $0.67 in the prior year. This year, the market expects an improvement in earnings ($0.79 versus $0.75).
- The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 14.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.