Provident Financial Holdings Stock Upgraded (PROV)

NEW YORK ( TheStreet) -- Provident Financial Holdings (Nasdaq: PROV) 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, attractive valuation levels and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Compared to its closing price of one year ago, PROV's share price has jumped by 29.91%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PROV should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The gross profit margin for PROVIDENT FINANCIAL HOLDINGS is currently very high, coming in at 75.60%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 8.90% is above that of the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 26.1%. Since the same quarter one year prior, revenues fell by 17.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • PROVIDENT FINANCIAL HOLDINGS has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, PROVIDENT FINANCIAL HOLDINGS turned its bottom line around by earning $1.15 versus -$0.14 in the prior year. For the next year, the market is expecting a contraction of 34.8% in earnings ($0.75 versus $1.15).

Provident Financial Holdings, Inc. operates as the holding company for Provident Savings Bank, F.S.B. that provides community banking and mortgage banking services to consumers and small to mid-sized businesses in the Inland Empire region of southern California. The company has a P/E ratio of 14.5, above the average banking industry P/E ratio of 9.8 and below the S&P 500 P/E ratio of 17.7. Provident Financial has a market cap of $106 million and is part of the financial sector and banking industry. Shares are up 17% year to date as of the close of trading on Monday.

You can view the full Provident Financial Ratings Report or get investment ideas from our investment research center.
-- Written by a member of TheStreet RatingsStaff

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