SunTrust Banks Inc Stock Buy Recommendation Reiterated (STI)
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- SUNTRUST BANKS INC reported significant earnings per share improvement 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. During the past fiscal year, SUNTRUST BANKS INC turned its bottom line around by earning $0.93 versus -$0.17 in the prior year. This year, the market expects an improvement in earnings ($3.47 versus $0.93).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 54.5% when compared to the same quarter one year prior, rising from $178.00 million to $275.00 million.
- Net operating cash flow has increased to $1,690.00 million or 41.65% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 13.13%.
- The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 78.70%. 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 11.30% trails the industry average.
- Powered by its strong earnings growth of 51.51% and other important driving factors, this stock has surged by 51.54% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
--Written by a member of TheStreet Ratings Staff. FREE from Real Money's Jim Cramer: Winners and Losers Election 2012 - Steps to take NOW so you can profit no matter who is in charge! Free Download Now
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