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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

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NEW YORK (

TheStreet

)

-- Hampton Roads Bankshares

(Nasdaq:

HMPR

) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and notable return on equity. However, as a counter to these strengths, we find that the company's revenue growth has not been good.

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Highlights from the ratings report include:

  • HAMPTON ROADS BANKSHARES INC has shown improvement in its earnings for its most recently reported quarter when compared with the same quarter a year earlier. The company has demonstrated a pattern of positive earnings per share growth over the past two years. During the past fiscal year, HAMPTON ROADS BANKSHARES INC turned its bottom line around by earning $0.02 versus -$0.46 in the prior 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 510.6% when compared to the same quarter one year prior, rising from $0.63 million to $3.86 million.
  • HMPR, with its decline in revenue, slightly underperformed the industry average of 9.0%. Since the same quarter one year prior, revenues slightly dropped by 9.4%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
  • 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. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, HAMPTON ROADS BANKSHARES INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • This stock has managed to rise its share value by 26.15% over the past twelve months. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.

Hampton Roads Bankshares, Inc. operates as the bank holding company for Bank of Hampton Roads (BOHR) and Shore Bank that provides community and commercial banking services primarily to individuals and small to medium-sized businesses. Hampton Roads has a market cap of $279.2 million and is part of the financial sector and banking industry. Shares are down 5.7% year to date as of the close of trading on Monday.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.