Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its solid stock price performance, impressive record of earnings per share growth, compelling growth in net income, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
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Highlights from the ratings report include:
- 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. Although other factors naturally played a role, the company's strong earnings growth was key. 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.
- REGIONS FINANCIAL CORP reported significant earnings per share improvement 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, REGIONS FINANCIAL CORP turned its bottom line around by earning $0.75 versus -$0.02 in the prior year. This year, the market expects an improvement in earnings ($0.81 versus $0.75).
- 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 148.3% when compared to the same quarter one year prior, rising from -$548.00 million to $265.00 million.
- The gross profit margin for REGIONS FINANCIAL CORP is currently very high, coming in at 88.80%. It has increased significantly from the same period last year. Along with this, the net profit margin of 17.85% is above that of the industry average.
Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. The company operates in three segments: Business Services, Consumer Services, and Wealth Management. Regions Financial has a market cap of $11.1 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 10.00, below the S&P 500 P/E ratio of 18.00. Shares are up 9.8% year to date as of the close of trading on Monday.
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--Written by a member of TheStreet Ratings Staff.
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