NEW YORK ( TheStreet) -- CFS Bancorp (Nasdaq: CITZ) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and attractive valuation levels. 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 revenue growth came in higher than the industry average of 14.3%. Since the same quarter one year prior, revenues rose by 11.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. 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.
  • CFS BANCORP INC has improved earnings per share by 22.2% 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. During the past fiscal year, CFS BANCORP INC turned its bottom line around by earning $0.33 versus -$0.05 in the prior year.
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Thrifts & Mortgage Finance industry average. The net income increased by 25.7% when compared to the same quarter one year prior, rising from $0.98 million to $1.23 million.

CFS Bancorp, Inc. operates as the holding company for Citizens Financial Bank that provides various banking products and services to individuals and businesses in the United States. The company has a P/E ratio of 16.9, below the average banking industry P/E ratio of 17.4 and below the S&P 500 P/E ratio of 17.7. CFS has a market cap of $58.7 million and is part of the financial sector and banking industry. Shares are up 0.6% year to date as of the close of trading on Tuesday.

You can view the full CFS Ratings Report or get investment ideas from our investment research center.
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