LNB Bancorp Stock Upgraded (LNBB)

NEW YORK ( TheStreet) -- LNB Bancorp (Nasdaq: LNBB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its increase in net income, expanding profit margins, solid stock price performance, growth in earnings per share and notable return on equity. 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:
  • 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 33.2% when compared to the same quarter one year prior, rising from $1.13 million to $1.51 million.
  • The gross profit margin for LNB BANCORP INC is currently very high, coming in at 73.10%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 10.30% is above that of the industry average.
  • 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. The stock's price rise over the last year has driven it to a level which is somewhat expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • LNB BANCORP INC reported significant earnings per share improvement 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, LNB BANCORP INC reported lower earnings of $0.47 versus $0.55 in the prior year. This year, the market expects an improvement in earnings ($0.66 versus $0.47).
  • LNBB, with its decline in revenue, slightly underperformed the industry average of 1.6%. Since the same quarter one year prior, revenues slightly dropped by 5.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
.

LNB Bancorp, Inc. operates as the holding company for The Lorain National Bank that provides commercial and retail banking, investment management, and trust services to individual, municipal, and corporate customers in Ohio. The company has a P/E ratio of 14.3, equal to the average banking industry P/E ratio and below the S&P 500 P/E ratio of 17.7. LNB has a market cap of $53.3 million and is part of the financial sector and banking industry. Shares are up 42.8% year to date as of the close of trading on Friday.

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