NEW YORK (
) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Highlights from the ratings report include:
- CMA's revenue growth has slightly outpaced the industry average of 2.4%. Since the same quarter one year prior, revenues slightly increased by 0.5%. 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 COMERICA INC is currently very high, coming in at 91.60%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, CMA's net profit margin of 14.50% significantly trails the industry average.
- COMERICA INC's earnings per share declined by 11.1% 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, COMERICA INC increased its bottom line by earning $2.09 versus $0.69 in the prior year. This year, the market expects an improvement in earnings ($2.26 versus $2.09).
- 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. When compared to other companies in the Commercial Banks industry and the overall market, COMERICA INC's return on equity is below that of both the industry average and the S&P 500.
- The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Commercial Banks industry average. The net income has remained constant at $96.00 million when compared to the same quarter one year ago.
Comerica Incorporated, through its subsidiaries, provides various financial products and services in Texas, Arizona, California, Florida, and Michigan, with select businesses operating in several other states, as well as in Canada and Mexico. The company has a P/E ratio of 11.9, below the average banking industry P/E ratio of 13.3 and below the S&P 500 P/E ratio of 17.7. Comerica has a market cap of $5.7 billion and is part of the
industry. Shares are down 37.3% year to date as of the close of trading on Monday.
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