Trade-Ideas: First Republic Bank (San Francisco CA (FRC) Is Today's "Barbarian At The Gate" Stock
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.Trade-Ideas LLC identified First Republic Bank (San Francisco CA (FRC) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified First Republic Bank (San Francisco CA as such a stock due to the following factors:
- FRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.4 million.
- FRC has traded 545,841 shares today.
- FRC traded in a range 281.4% of the normal price range with a price range of $2.16.
- FRC traded above its daily resistance level (quality: 531 days, meaning that the stock is crossing a resistance level set by the last 531 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock s movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.EXCLUSIVE OFFER: Get the inside scoop on opportunities in FRC with the Ticky from Trade-Ideas. See the FREE profile for FRC NOW at Trade-IdeasMore details on FRC: First Republic Bank, together with its subsidiaries, provides personalized, relationship-based preferred banking, business banking, real estate lending, trust, and wealth management services to clients in metropolitan areas of the United States. The stock currently has a dividend yield of 1%. FRC has a PE ratio of 18.6. Currently there are 9 analysts that rate First Republic Bank (San Francisco CA a buy, no analysts rate it a sell, and 5 rate it a hold.The average volume for First Republic Bank (San Francisco CA has been 1.2 million shares per day over the past 30 days. First Republic Bank (San Francisco CA has a market cap of $6.2 billion and is part of the financial sector and banking industry. Shares are up 43.5% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates First Republic Bank (San Francisco CA as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 3.8%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- Powered by its strong earnings growth of 28.33% and other important driving factors, this stock has surged by 40.03% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
- FIRST REPUBLIC BANK has improved earnings per share by 28.3% 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. During the past fiscal year, FIRST REPUBLIC BANK increased its bottom line by earning $2.76 versus $2.65 in the prior year. This year, the market expects an improvement in earnings ($3.15 versus $2.76).
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 16.1% when compared to the same quarter one year prior, going from $97.91 million to $113.72 million.
- The gross profit margin for FIRST REPUBLIC BANK is currently very high, coming in at 89.29%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.79% significantly outperformed against the industry average.
- You can view the full First Republic Bank (San Francisco CA Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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