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.
Trade-Ideas LLC identified
) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified First Republic Bank (San Francisco CA as such a stock due to the following factors:
- FRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.0 million.
- FRC has traded 545,841 shares today.
- FRC is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in FRC with the Ticky from Trade-Ideas. See the FREE profile for FRC NOW at Trade-Ideas
More details on FRC:
First Republic Bank, together with its subsidiaries, provides personalized, relationship-based preferred banking, business banking, real estate lending, trust, and wealth management services to clients in metropolitan areas of the United States. The stock currently has a dividend yield of 1%. FRC has a PE ratio of 18.6. Currently there are 9 analysts that rate First Republic Bank (San Francisco CA a buy, no analysts rate it a sell, and 5 rate it a hold.
The average volume for First Republic Bank (San Francisco CA has been 1.2 million shares per day over the past 30 days. First Republic Bank (San Francisco CA has a market cap of $6.2 billion and is part of the financial sector and banking industry. Shares are up 43.5% year to date as of the close of trading on Friday.
rates First Republic Bank (San Francisco CA as a
. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in net income, growth in earnings per share and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 7.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has significantly exceeded that of the Commercial Banks industry average, but is less than that of the S&P 500. The net income increased by 9.0% when compared to the same quarter one year prior, going from $102.70 million to $111.98 million.
- The gross profit margin for FIRST REPUBLIC BANK is currently very high, coming in at 88.02%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 28.01% significantly outperformed against the industry average.
- FIRST REPUBLIC BANK's earnings per share improvement from the most recent quarter was slightly positive. 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, FIRST REPUBLIC BANK increased its bottom line by earning $2.76 versus $2.65 in the prior year. This year, the market expects an improvement in earnings ($3.12 versus $2.76).
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 44.84% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full First Republic Bank (San Francisco CA Ratings Report.