SunTrust Banks Inc Stock Buy Recommendation Reiterated (STI)

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) -- SunTrust Banks (NYSE: STI) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income, revenue growth, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

  • EXCLUSIVE OFFER: Jim Cramer's Protégé, Dave Peltier, only buys Stocks Under $10 that he thinks could potentially double. See what he's trading today with a 14-day FREE pass

Highlights from the ratings report include:
  • Powered by its strong earnings growth of 400.00% and other important driving factors, this stock has surged by 38.09% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains 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 381.1% when compared to the same quarter one year prior, rising from $74.00 million to $356.00 million.
  • Despite its growing revenue, the company underperformed as compared with the industry average of 10.8%. Since the same quarter one year prior, revenues slightly increased by 6.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 80.20%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of 14.76% trails the industry average.

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank, which provides various financial services in the United States. SunTrust Banks has a market cap of $15.5 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 8, below the S&P 500 P/E ratio of 17.7. Shares are up 1.4% year to date as of the close of trading on Wednesday.

You can view the full SunTrust Banks Ratings Report or get investment ideas from our investment research center.

--Written by a member of TheStreet Ratings Staff.

It's Official: Action Alerts PLUS beats the S&P 500 with Dividends Reinvested! Cramer and Link were up 16.72% in 2012. Were you? See what they are trading for 14-days FREE

null

More from Markets

Dow Finishes Lower as Nasdaq Posts New Record

Dow Finishes Lower as Nasdaq Posts New Record

Airlines Rebuke Trump Policy of Separating Children

Airlines Rebuke Trump Policy of Separating Children

3 Must Reads on the Market From TheStreet's Top Columnists

3 Must Reads on the Market From TheStreet's Top Columnists

Deutsche Bank Fined $205 Million Over Currency-Trading Violations

Deutsche Bank Fined $205 Million Over Currency-Trading Violations

Instagram Launches New Longform Video Platform

Instagram Launches New Longform Video Platform