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, attractive valuation levels, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

  • 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 36.95% and other important driving factors, this stock has surged by 32.36% 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 40.8% when compared to the same quarter one year prior, rising from $250.00 million to $352.00 million.
  • Net operating cash flow has significantly increased by 508.82% to $621.00 million when compared to the same quarter last year. In addition, SUNTRUST BANKS INC has also vastly surpassed the industry average cash flow growth rate of -68.25%.
  • The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 84.30%. 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 15.84% trails the industry average.

SunTrust Banks, Inc. operates as the holding company for SunTrust Bank that provides various financial services in the United States. The company operates in three segments: Consumer Banking and Private Wealth Management, Wholesale Banking, and Mortgage Banking. SunTrust Banks has a market cap of $16.5 billion and is part of the financial sector and banking industry. The company has a P/E ratio of 8.00, below the S&P 500 P/E ratio of 18.00. Shares are up 7.8% year to date as of the close of trading on Friday.

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.

Exclusive Offer: Jim Cramer's 'go-to' small/mid-cap guru Bryan Ashenberg only buys stocks he thinks could return 50-100%. See his top picks for 14-days FREE.
null

If you liked this article you might like

Equifax CEO and Board Are Pretty Cozy

JPMorgan, U.S. Banks Face $3 Billion of Loan Losses From Catastrophic Hurricanes

14 Bank Stocks That Will Either Surge or Do Nothing

Bank Stocks Have Had Monster Runs -- Now What?

SunTrust Banks: Cramer's Top Takeaways