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 expanding profit margins, good cash flow from operations, solid stock price performance, reasonable valuation levels and notable return on equity. 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:
- The gross profit margin for NORTHEAST COMMUNITY BANCORP is currently very high, coming in at 72.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 7.70% is above that of the industry average.
- Net operating cash flow has slightly increased to $1.18 million or 7.78% when compared to the same quarter last year. In addition, NORTHEAST COMMUNITY BANCORP has also vastly surpassed the industry average cash flow growth rate of -91.83%.
- Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
- NORTHEAST COMMUNITY BANCORP reported flat earnings per share in the most recent quarter. This company has not demonstrated a clear trend in earnings over the past two years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, NORTHEAST COMMUNITY BANCORP turned its bottom line around by earning $0.15 versus -$0.20 in the prior year.
- Despite the weak revenue results, NECB has outperformed against the industry average of 26.1%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
Northeast Community Bancorp, Inc. operates as the holding company for Northeast Community Bank that provides various banking and financial products and services to consumers and businesses. The company has a P/E ratio of 30.6, above the average banking industry P/E ratio of 26.8 and above the S&P 500 P/E ratio of 17.7. Northeast Community has a market cap of $78 million and is part of the
industry. Shares are up 29.9% year to date as of the close of trading on Tuesday.
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-- Written by a member of TheStreet RatingsStaff