Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model NEW YORK ( TheStreet) -- Taylor Capital Group (Nasdaq: TAYC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, expanding profit margins and compelling growth in net income. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.
- ACTIVE STOCK TRADERS: Check out TheStreet's special offer for Real Money, headlined by Jim Cramer, now!
- The revenue growth greatly exceeded the industry average of 16.7%. Since the same quarter one year prior, revenues rose by 46.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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. In comparison to the other companies in the Commercial Banks industry and the overall market, TAYLOR CAPITAL GROUP INC's return on equity significantly exceeds that of the industry average and is above that of the S&P 500.
- Powered by its strong earnings growth of 315.78% and other important driving factors, this stock has surged by 162.76% 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, TAYC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- The gross profit margin for TAYLOR CAPITAL GROUP INC is currently very high, coming in at 87.50%. It has increased significantly from the same period last year. Along with this, the net profit margin of 18.30% is above that of the industry average.
- 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 1121.2% when compared to the same quarter one year prior, rising from -$1.39 million to $14.23 million.
-- Written by a member of TheStreet Ratings Staff