7. Wal-Mart Stores (WMT)
10-Year EBITDA Growth Rate: 10.30%
Warren Buffett's Portfolio Weighting at of 12-31-2013: 3.7%
Value of Holdings: $3.893 billionWal-Mart Stores (WMT) is a retail operator with several formats operating globally. Wal-Mart operates in three segments: the Wal-Mart U.S., the Wal-Mart International and Sam's Club. Free Report: Jim Cramer's Best Stocks for 2014 TheStreet Ratings team rates WESTERN ALLIANCE BANCORP as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation: "We rate WESTERN ALLIANCE BANCORP (WAL) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value." Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 11.8%. Since the same quarter one year prior, revenues rose by 10.2%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- The gross profit margin for WESTERN ALLIANCE BANCORP is currently very high, coming in at 88.16%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.18% significantly outperformed against the industry average.
- Net operating cash flow has significantly increased by 80.76% to $41.24 million when compared to the same quarter last year. Despite an increase in cash flow of 80.76%, WESTERN ALLIANCE BANCORP is still growing at a significantly lower rate than the industry average of 405.62%.
- 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, WESTERN ALLIANCE BANCORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- Compared to its closing price of one year ago, WAL's share price has jumped by 76.55%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: WAL Ratings Report