NEW YORK (TheStreet) -- Here's an under the radar bank stock that has a great looking chart!
A chartist must have made the Meridian Bancorp (EBSB) - Get Report chart. I could take out a ruler to draw the uptrend line, but I think it would be redundant as one can easily see it with absolutely no experience. Notice the strongly rising On-Balance Volume (OBV) line in the lower panel.
In this chart, above, you get the same sense of trend along with the positive Moving Average Convergence Divergence oscillator.
Here we see the upside breakout in EBSB. Maybe we will get a shallow pullback to buy. The height of this consolidation is just $1.50 so when we add it to the breakout at $13.50 we get a $15 target -- not wildly bullish but certainly a great chart!
Separately, TheStreet Ratings team rates MERIDIAN BANCORP INC (MD) as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
We rate MERIDIAN BANCORP INC (MD) (EBSB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, growth in earnings per share, increase in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 8.2%. Since the same quarter one year prior, revenues rose by 12.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- MERIDIAN BANCORP INC (MD) has improved earnings per share by 7.7% 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 two years. We feel that this trend should continue. During the past fiscal year, MERIDIAN BANCORP INC (MD) increased its bottom line by earning $0.41 versus $0.29 in the prior year. This year, the market expects an improvement in earnings ($0.45 versus $0.41).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry average. The net income increased by 1.5% when compared to the same quarter one year prior, going from $5.50 million to $5.59 million.
- Net operating cash flow has significantly increased by 396.01% to $6.16 million when compared to the same quarter last year. In addition, MERIDIAN BANCORP INC (MD) has also vastly surpassed the industry average cash flow growth rate of 119.97%.
- The stock has not only risen over the past year, it has done so at a faster pace than the S&P 500, reflecting the earnings growth and other positive factors similar to those we have cited here. 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: EBSB