Trade-Ideas: Prosperity (PB) Is Today's New Lifetime High Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Prosperity ( PB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Prosperity as such a stock due to the following factors:

  • PB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $11.3 million.
  • PB has traded 164,287 shares today.
  • PB is trading at a new lifetime high.

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More details on PB:

Prosperity Bancshares, Inc. operates as the holding company for Prosperity Bank that provides a range of financial products and services to small and medium-sized businesses, and consumers in Texas. The stock currently has a dividend yield of 1.4%. PB has a PE ratio of 17.5. Currently there are 3 analysts that rate Prosperity a buy, 1 analyst rates it a sell, and 12 rate it a hold.

The average volume for Prosperity has been 328,600 shares per day over the past 30 days. Prosperity has a market cap of $3.6 billion and is part of the financial sector and banking industry. The stock has a beta of 1.63 and a short float of 10.7% with 30.79 days to cover. Shares are up 43.3% year to date as of the close of trading on Wednesday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Prosperity as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins, growth in earnings per share, compelling growth in net income and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 3.3%. Since the same quarter one year prior, revenues rose by 45.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • PROSPERITY BANCSHARES INC has improved earnings per share by 14.1% 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, PROSPERITY BANCSHARES INC increased its bottom line by earning $3.22 versus $3.01 in the prior year. This year, the market expects an improvement in earnings ($3.56 versus $3.22).
  • 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 45.6% when compared to the same quarter one year prior, rising from $36.97 million to $53.84 million.
  • The gross profit margin for PROSPERITY BANCSHARES INC is currently very high, coming in at 91.52%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 34.83% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 57.87% to $55.05 million when compared to the same quarter last year. Despite an increase in cash flow, PROSPERITY BANCSHARES INC's cash flow growth rate is still lower than the industry average growth rate of 104.86%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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