Macro Bank Inc. Stock Upgraded (BMA)

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) -- Macro Bank (NYSE: BMA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, growth in earnings per share and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

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Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 3.1%. Since the same quarter one year prior, revenues slightly increased by 9.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market, BANCO MACRO SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 103.03% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BMA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • BANCO MACRO SA has improved earnings per share by 7.9% 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, BANCO MACRO SA increased its bottom line by earning $5.19 versus $4.60 in the prior year. This year, the market expects an improvement in earnings ($5.89 versus $5.19).
  • Net operating cash flow has significantly increased by 480.60% to $201.50 million when compared to the same quarter last year. In addition, BANCO MACRO SA has also vastly surpassed the industry average cash flow growth rate of 75.75%.

Banco Macro S.A. provides banking products and services to individuals, entrepreneurs, companies, and corporate customers in Argentina. The company has a P/E ratio of 1.4, below the S&P 500 P/E ratio of 17.7. Macro has a market cap of $1.69 billion and is part of the financial sector and banking industry. Shares are up 50% year to date as of the close of trading on Friday.

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

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