NEW YORK ( TheStreet) -- Wilshire Bancorp (Nasdaq: WIBC) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, expanding profit margins and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the stock has had a generally disappointing performance in the past year. Highlights from the ratings report include:
- 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 132.1% when compared to the same quarter one year prior, rising from -$51.19 million to $16.45 million.
- The gross profit margin for WILSHIRE BANCORP INC is currently very high, coming in at 86.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 46.20% significantly outperformed against the industry average.
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, WILSHIRE BANCORP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
- WIBC has underperformed the S&P 500 Index, declining 8.35% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
-- Written by a member of TheStreet RatingsStaff