Trade-Ideas: SunTrust Banks (STI) Is Today's Post-Market Leader 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
(
) as a post-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified SunTrust Banks as such a stock due to the following factors:
- STI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $130.4 million.
- STI is up 2.1% today from today's close.
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More details on STI:
SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services in the United States. The company operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. The stock currently has a dividend yield of 1.9%. STI has a PE ratio of 13.0. Currently there are 9 analysts that rate SunTrust Banks a buy, no analysts rate it a sell, and 10 rate it a hold.
The average volume for SunTrust Banks has been 3.7 million shares per day over the past 30 days. SunTrust Banks has a market cap of $22.0 billion and is part of the financial sector and banking industry. Shares are down 1.8% year-to-date as of the close of trading on Tuesday.
Analysis:
rates SunTrust Banks as a
. The company's strengths can be seen in multiple areas, such as its expanding profit margins, increase in stock price during the past year, attractive valuation levels and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
Highlights from the ratings report include:
- The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 90.15%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 18.38% is above that of the industry average.
- Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- SUNTRUST BANKS INC's earnings per share declined by 6.5% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUNTRUST BANKS INC increased its bottom line by earning $3.23 versus $2.41 in the prior year. This year, the market expects an improvement in earnings ($3.24 versus $3.23).
- Regardless of the drop in revenue, the company managed to outperform against the industry average of 3.0%. Since the same quarter one year prior, revenues slightly dropped by 0.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full SunTrust Banks Ratings Report.
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