NEW YORK ( TheStreet) -- Yadkin Valley Financial Corporation (Nasdaq: YAVY) 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, compelling growth in net income, attractive valuation levels, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
- Powered by its strong earnings growth of 144.82% and other important driving factors, this stock has surged by 41.08% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, YAVY should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past 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 154.4% when compared to the same quarter one year prior, rising from -$20.21 million to $11.00 million.
- The gross profit margin for YADKIN VALLEY FINANCIAL CORP is currently very high, coming in at 71.90%. It has increased significantly from the same period last year. Along with this, the net profit margin of 45.50% 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, YADKIN VALLEY FINANCIAL CORP has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
-- Written by a member of TheStreet Ratings Staff