NEW YORK (
) has been upgraded by TheStreet Ratings from sell to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, notable return on equity, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
Highlights from the ratings report include:
- Powered by its strong earnings growth of 7462.50% and other important driving factors, this stock has surged by 36.84% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BERK should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 6736.6% when compared to the same quarter one year prior, rising from $0.63 million to $42.73 million.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. In comparison to the other companies in the Commercial Banks industry and the overall market, BERKSHIRE BANCORP INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- The gross profit margin for BERKSHIRE BANCORP INC is currently very high, coming in at 71.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 448.10% significantly outperformed against the industry average.
Berkshire Bancorp, Inc. operates as the bank holding company for The Berkshire Bank that provides community banking services to businesses, professionals, and retail customers primarily in New York City metropolitan area and the Villages of Goshen and Harriman. The company has a P/E ratio of 1.9, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Berkshire has a market cap of $44.8 million and is part of the
industry. Shares are up 19.5% year to date as of the close of trading on Friday.
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