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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.

Trade-Ideas LLC identified

Texas Capital

(

TCBI

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Texas Capital as such a stock due to the following factors:

  • TCBI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $41.9 million.
  • TCBI has traded 520,871 shares today.
  • TCBI is trading at a new lifetime high.

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More details on TCBI:

Texas Capital Bancshares, Inc. operates as the holding company for Texas Capital Bank, National Association that provides various banking products and services for commercial businesses, and professionals and entrepreneurs in Texas. TCBI has a PE ratio of 21.2. Currently there are 7 analysts that rate Texas Capital a buy, no analysts rate it a sell, and 7 rate it a hold.

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The average volume for Texas Capital has been 354,500 shares per day over the past 30 days. Texas has a market cap of $2.4 billion and is part of the financial sector and banking industry. The stock has a beta of 1.09 and a short float of 6.9% with 4.03 days to cover. Shares are up 35.6% year-to-date as of the close of trading on Friday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Texas Capital as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, good cash flow from operations, expanding profit margins, solid stock price performance and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.3%. Since the same quarter one year prior, revenues rose by 11.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has significantly increased by 256.89% to $620.68 million when compared to the same quarter last year. In addition, TEXAS CAPITAL BANCSHARES INC has also vastly surpassed the industry average cash flow growth rate of 122.81%.
  • The gross profit margin for TEXAS CAPITAL BANCSHARES INC is currently very high, coming in at 90.89%. Regardless of TCBI's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 26.64% trails the industry average.
  • The company, on the basis of net income growth from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and the Commercial Banks industry average. The net income increased by 2.9% when compared to the same quarter one year prior, going from $32.54 million to $33.48 million.
  • Compared to where it was a year ago today, the stock is now trading at a higher level, regardless of the company's weak earnings results. 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.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

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