Genworth Financial Inc Stock Upgraded (GNW)

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) -- Genworth Financial (NYSE: GNW) 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, impressive record of earnings per share growth, compelling growth in net income, revenue growth and attractive valuation levels. We feel these strengths outweigh the fact that the company shows low profit margins.

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Highlights from the ratings report include:
  • Powered by its strong earnings growth of 257.14% and other important driving factors, this stock has surged by 68.24% 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, GNW should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • GENWORTH FINANCIAL INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GENWORTH FINANCIAL INC increased its bottom line by earning $0.64 versus $0.10 in the prior year. This year, the market expects an improvement in earnings ($1.22 versus $0.64).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 123.9% when compared to the same quarter one year prior, rising from $46.00 million to $103.00 million.
  • GNW's revenue growth trails the industry average of 17.7%. Since the same quarter one year prior, revenues slightly increased by 3.3%. Growth in the company's revenue appears to have helped boost the earnings per share.
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Genworth Financial, Inc., a financial services company, provides insurance, wealth management, investment, and financial solutions in the United States and internationally. The company's U.S. The company has a P/E ratio of 11.8, below the S&P 500 P/E ratio of 17.7. Genworth Financial has a market cap of $5.06 billion and is part of the financial sector and insurance industry. Shares are up 37.5% year to date as of the close of trading on Friday.

You can view the full Genworth Financial 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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