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) -- Central Valley Community Bancorp (Nasdaq: CVCY) 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, increase in net income, expanding profit margins, growth in earnings per share and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.
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- The revenue growth greatly exceeded the industry average of 16.4%. Since the same quarter one year prior, revenues rose by 22.3%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 34.6% when compared to the same quarter one year prior, rising from $1.64 million to $2.21 million.
- The gross profit margin for CENTRAL VALLEY CMNTY BANCORP is currently very high, coming in at 96.98%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 19.21% is above that of the industry average.
- CENTRAL VALLEY CMNTY BANCORP has improved earnings per share by 18.8% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, CENTRAL VALLEY CMNTY BANCORP's EPS of $0.75 remained unchanged from the prior years' EPS of $0.75. This year, the market expects an improvement in earnings ($0.77 versus $0.75).
- 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 35.10% over the past year, a rise that has exceeded that of the S&P 500 Index. 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.