HomeStreet Inc Stock Downgraded (HMST)
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- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 104.0% when compared to the same quarter one year ago, falling from $21.50 million to -$0.86 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, HOMESTREET INC's return on equity is below that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 26.24%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 104.10% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- HOMESTREET INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HOMESTREET INC reported lower earnings of $1.61 versus $5.62 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus $1.61).
- The revenue fell significantly faster than the industry average of 102.0%. Since the same quarter one year prior, revenues fell by 34.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
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