Hudson Valley Holding Corp Stock Upgraded (HVB)

NEW YORK ( TheStreet) -- Hudson Valley (NYSE: HVB) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income, expanding profit margins, impressive record of earnings per share growth and attractive valuation levels. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 29.6%. Since the same quarter one year prior, revenues rose by 49.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • 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 273.4% when compared to the same quarter one year prior, rising from $4.82 million to $18.01 million.
  • The gross profit margin for HUDSON VALLEY HOLDING CORP is currently very high, coming in at 93.80%. It has increased significantly from the same period last year. Despite the strong results of the gross profit margin, HVB's net profit margin of 33.60% significantly trails the industry average.
  • HUDSON VALLEY HOLDING CORP 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, HUDSON VALLEY HOLDING CORP swung to a loss, reporting -$0.12 versus $0.27 in the prior year. This year, the market expects an improvement in earnings ($1.23 versus -$0.12).
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Hudson Valley Holding Corp. operates as the holding company for Hudson Valley Bank, which provides banking and related services to businesses, professionals, municipalities, not-for-profit organizations, and individuals in New York. The company has a P/E ratio of 222.6, above the average banking industry P/E ratio of 31.5 and above the S&P 500 P/E ratio of 17.7. Hudson Valley has a market cap of $348.5 million and is part of the financial sector and banking industry. Shares are down 16.1% year to date as of the close of trading on Friday.

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

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