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NEW YORK (TheStreet) -- Bankwell Financial Group Inc (BWFG) - Get Report has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANKWELL FINANCIAL GROUP INC (BWFG) a BUY. This is driven by multiple strengths, 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, growth in earnings per share, notable return on equity and increase in net income. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- BWFG's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues rose by 14.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- BANKWELL FINANCIAL GROUP INC has improved earnings per share by 15.8% 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 year. We feel that this trend should continue. During the past fiscal year, BANKWELL FINANCIAL GROUP INC increased its bottom line by earning $0.77 versus $0.16 in the prior year. This year, the market expects an improvement in earnings ($0.97 versus $0.77).
- Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, BANKWELL FINANCIAL GROUP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Commercial Banks industry average, but is greater than that of the S&P 500. The net income increased by 13.0% when compared to the same quarter one year prior, going from $1.32 million to $1.49 million.
- In its most recent trading session, BWFG has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.
- You can view the full analysis from the report here: BWFG Ratings Report
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