United Financial Bancorp Inc. Stock Upgraded (UBNK)

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.

NEW YORK ( TheStreet) -- United Financial Bancorp (Nasdaq: UBNK) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, good cash flow from operations, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.

  • 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:
  • The revenue growth significantly trails the industry average of 106.3%. Since the same quarter one year prior, revenues rose by 35.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Net operating cash flow has significantly increased by 183.79% to $7.94 million when compared to the same quarter last year. In addition, UNITED FINANCIAL BANCORP INC has also vastly surpassed the industry average cash flow growth rate of -350.04%.
  • The gross profit margin for UNITED FINANCIAL BANCORP INC is currently very high, coming in at 82.15%. 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 15.24% trails the industry average.
  • UNITED FINANCIAL BANCORP INC has improved earnings per share by 17.6% 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, UNITED FINANCIAL BANCORP INC reported lower earnings of $0.28 versus $0.74 in the prior year. This year, the market expects an improvement in earnings ($1.00 versus $0.28).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Thrifts & Mortgage Finance industry average, but is greater than that of the S&P 500. The net income increased by 56.8% when compared to the same quarter one year prior, rising from $2.58 million to $4.05 million.

United Financial Bancorp, Inc. operates as the bank holding company for United Bank that provides banking related products and services in Massachusetts. United Financial has a market cap of $308.1 million and is part of the financial sector and banking industry. Shares are down 0.3% year to date as of the close of trading on Friday.

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

3x UPSIDE POTENTIAL: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more..
Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

If you liked this article you might like

Activist Fund Clover Partners Shares Its Top Bank Stock Picks

Activist Fund Clover Partners Shares Its Top Bank Stock Picks

13 Banks That Activist Investors Love

13 Banks That Activist Investors Love

Ex-Div Reminder For United Financial Bancorp (UBNK)

Ex-Div Reminder For United Financial Bancorp (UBNK)

Citizens Bank's IPO Closes Up 7% After Disappointing Opening

Citizens Bank's IPO Closes Up 7% After Disappointing Opening