Peapack Gladstone Financial Corporation Stock Upgraded (PGC)

NEW YORK ( TheStreet) -- Peapack Gladstone Financial Corporation (Nasdaq: PGC) 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, impressive record of earnings per share growth, compelling growth in net income, revenue growth and expanding profit margins. 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:
  • 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. Looking ahead, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
  • PEAPACK-GLADSTONE FINL CORP has improved earnings per share by 44.4% 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, PEAPACK-GLADSTONE FINL CORP increased its bottom line by earning $1.24 versus $0.68 in the prior year.
  • 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 34.6% when compared to the same quarter one year prior, rising from $1.88 million to $2.53 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 3.0%. Since the same quarter one year prior, revenues slightly increased by 0.1%. 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 PEAPACK-GLADSTONE FINL CORP is currently very high, coming in at 82.40%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 13.80% is above that of the industry average.
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Peapack-Gladstone Financial Corporation operates as the holding company for Peapack-Gladstone Bank that provides financial, trust, and investment services to individuals and small businesses in New Jersey. The company has a P/E ratio of 12, above the average banking industry P/E ratio of 11.4 and below the S&P 500 P/E ratio of 17.7. Peapack Gladstone Financial has a market cap of $126.4 million and is part of the financial sector and banking industry. Shares are up 40.6% year to date as of the close of trading on Friday.

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