NEW YORK ( TheStreet) -- Access National Corporation (Nasdaq: ANCX) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, expanding profit margins, notable return on equity and impressive record of earnings per share growth. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 30.43% and other important driving factors, this stock has surged by 29.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, ANCX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • ANCX's revenue growth trails the industry average of 20.9%. Since the same quarter one year prior, revenues slightly increased by 1.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The gross profit margin for ACCESS NATIONAL CORP is currently very high, coming in at 87.80%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 15.90% is above that of the industry average.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, ACCESS NATIONAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • ACCESS NATIONAL CORP has improved earnings per share by 30.4% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ACCESS NATIONAL CORP reported lower earnings of $0.72 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($0.93 versus $0.72).

Access National Corporation operates as the bank holding company for Access National Bank that provides commercial credit, deposit, and mortgage services to middle market businesses and associated professionals primarily in the greater Washington, D.C. Metropolitan area. The company has a P/E ratio of 8.4, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. Access has a market cap of $80 million and is part of the financial sector and banking industry. Shares are up 24% year to date as of the close of trading on Thursday.

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