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) -- Alliance Bancorp Inc Of Pennsylvania (Nasdaq: ALLB) 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, good cash flow from operations, expanding profit margins, increase in stock price during the past year and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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- ALLB's revenue growth has slightly outpaced the industry average of 0.7%. Since the same quarter one year prior, revenues slightly increased by 1.7%. 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 54.78% to $0.78 million when compared to the same quarter last year. In addition, ALLIANCE BANCORP OF PA has also vastly surpassed the industry average cash flow growth rate of -36.00%.
- The gross profit margin for ALLIANCE BANCORP OF PA is currently very high, coming in at 84.19%. 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 12.41% trails the industry average.
- The net income growth from the same quarter one year ago has exceeded that of the Thrifts & Mortgage Finance industry average, but is less than that of the S&P 500. The net income increased by 29.1% when compared to the same quarter one year prior, rising from $0.42 million to $0.55 million.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's 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 the other strengths this company displays justify these higher price levels.