Today's Pre-Market Trading Very Positive For SunTrust Banks (STI)

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 SunTrust Banks ( STI) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified SunTrust Banks as such a stock due to the following factors:

  • STI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $162.4 million.
  • STI traded 11,652 shares today in the pre-market hours as of 9:27 AM.
  • STI is up 3.3% today from yesterday's close.

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More details on STI:

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. The stock currently has a dividend yield of 1.1%. STI has a PE ratio of 16.5. Currently there are 8 analysts that rate SunTrust Banks a buy, 1 analyst rates it a sell, and 14 rate it a hold.

The average volume for SunTrust Banks has been 3.6 million shares per day over the past 30 days. SunTrust Banks has a market cap of $20.5 billion and is part of the financial sector and banking industry. The stock has a beta of 1.76 and a short float of 1.4% with 1.88 days to cover. Shares are up 4.4% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates SunTrust Banks as a buy. The company's strengths can be seen in multiple areas, such as its good cash flow from operations, expanding profit margins, solid stock price performance and attractive valuation levels. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • Net operating cash flow has significantly increased by 319.62% to $1,858.00 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 119.99%.
  • The gross profit margin for SUNTRUST BANKS INC is currently very high, coming in at 88.81%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, STI's net profit margin of 9.36% significantly trails the industry average.
  • Compared to its closing price of one year ago, STI's share price has jumped by 32.39%, exceeding the performance of the broader market during that same time frame. Looking ahead, the stock's sharp rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that other strengths this company displays justify these higher price levels.
  • The revenue fell significantly faster than the industry average of 0.5%. Since the same quarter one year prior, revenues fell by 49.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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