First Community Bancshares Inc Bluefield Stock Upgraded (FCBC)

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) -- First Community Bancshares Inc Bluefield (Nasdaq: FCBC) 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, expanding profit margins, solid stock price performance, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

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Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 18.7%. Since the same quarter one year prior, revenues rose by 29.5%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 74.07% and other important driving factors, this stock has surged by 26.91% 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, FCBC 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 89.2% when compared to the same quarter one year prior, rising from $5.32 million to $10.06 million.
  • The gross profit margin for FIRST CMNTY BANCSHARES INC is currently very high, coming in at 82.70%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 25.00% significantly outperformed against the industry average.
  • FIRST CMNTY BANCSHARES 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, FIRST CMNTY BANCSHARES INC reported lower earnings of $1.07 versus $1.23 in the prior year. This year, the market expects an improvement in earnings ($1.37 versus $1.07).
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First Community Bancshares, Inc. operates as a financial holding company of First Community Bank, N.A. that provides various commercial and consumer banking products and services. The company has a P/E ratio of 16.1, below the S&P 500 P/E ratio of 17.7. First Community Bancshares Inc Bluefield has a market cap of $309.9 million and is part of the financial sector and banking industry. Shares are up 22% year to date as of the close of trading on Monday.

You can view the full First Community Bancshares Inc Bluefield Ratings Report or get investment ideas from our investment research center.

-- Written by a member of TheStreet Ratings Staff

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.

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