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 SVB Financial Group ( SIVB) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified SVB Financial Group as such a stock due to the following factors:
- SIVB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.5 million.
- SIVB has traded 1,401 shares today.
- SIVB is trading at a new lifetime high.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SIVB with the Ticky from Trade-Ideas. See the FREE profile for SIVB NOW at Trade-Ideas More details on SIVB: SVB Financial Group, a diversified financial services company, provides various banking and financial products and services. It operates in three segments: Global Commercial Bank, SVB Private Bank, and SVB Capital. SIVB has a PE ratio of 25.3. Currently there are 6 analysts that rate SVB Financial Group a buy, no analysts rate it a sell, and 7 rate it a hold. The average volume for SVB Financial Group has been 292,900 shares per day over the past 30 days. SVB Financial Group has a market cap of $5.4 billion and is part of the financial sector and banking industry. Shares are up 13.3% year-to-date as of the close of trading on Friday. 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 SVB Financial Group as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, growth in earnings per share, compelling growth in net income, notable return on equity and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value. Highlights from the ratings report include:
- The revenue growth greatly exceeded the industry average of 17.7%. Since the same quarter one year prior, revenues rose by 47.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
- SVB FINANCIAL GROUP has improved earnings per share by 13.4% 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, SVB FINANCIAL GROUP increased its bottom line by earning $4.69 versus $3.90 in the prior year. This year, the market expects an improvement in earnings ($5.45 versus $4.69).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 16.5% when compared to the same quarter one year prior, going from $50.42 million to $58.76 million.
- 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 on the basis of return on equity, SVB FINANCIAL GROUP has outperformed in comparison with the industry average, but has underperformed when compared to that of 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 75.94% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full SVB Financial Group Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.