3 Stocks Raising The Banking Industry Higher

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.

All three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 143 points (0.9%) at 16,970 as of Tuesday, July 1, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 2,189 issues advancing vs. 849 declining with 140 unchanged.

The Banking industry as a whole closed the day up 1.2% versus the S&P 500, which was up 0.8%. Top gainers within the Banking industry included Village Bank and Trust Financial ( VBFC), up 3.3%, Porter Bancorp ( PBIB), up 1.5%, Intermountain Community Bancorp ( IMCB), up 3.8%, New Century Bancorp ( NCBC), up 2.0% and First Capital Bancorp ( FCVA), up 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today:

First Capital Bancorp ( FCVA) is one of the companies that pushed the Banking industry higher today. First Capital Bancorp was up $0.08 (1.8%) to $4.58 on heavy volume. Throughout the day, 7,289 shares of First Capital Bancorp exchanged hands as compared to its average daily volume of 4,400 shares. The stock ranged in a price between $4.55-$4.61 after having opened the day at $4.61 as compared to the previous trading day's close of $4.50.

First Capital Bancorp, Inc. operates as the bank holding company for First Capital Bank that offers various banking and related financial services to small and medium-sized businesses, professionals, and individuals in Richmond, Virginia metropolitan area. First Capital Bancorp has a market cap of $58.1 million and is part of the financial sector. Shares are down 3.0% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate First Capital Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates First Capital Bancorp as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and impressive record of earnings per share growth. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.

Highlights from TheStreet Ratings analysis on FCVA go as follows:

  • FCVA's revenue growth has slightly outpaced the industry average of 2.7%. Since the same quarter one year prior, revenues slightly increased by 2.8%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • 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 41.14% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
  • The gross profit margin for FIRST CAPITAL BANCORP INC/VA is currently very high, coming in at 84.33%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FCVA's net profit margin of 15.29% significantly trails the industry average.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, FIRST CAPITAL BANCORP INC/VA has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Net operating cash flow has significantly decreased to $1.24 million or 66.70% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.

You can view the full analysis from the report here: First Capital Bancorp 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.

At the close, New Century Bancorp ( NCBC) was up $0.13 (2.0%) to $6.75 on light volume. Throughout the day, 919 shares of New Century Bancorp exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in a price between $6.75-$6.77 after having opened the day at $6.76 as compared to the previous trading day's close of $6.62.

New Century Bancorp, Inc. operates as a bank holding company for New Century Bank that provides commercial and retail banking products and services to individuals and small to medium-sized businesses in southeastern North Carolina. New Century Bancorp has a market cap of $46.1 million and is part of the financial sector. Shares are down 0.8% year-to-date as of the close of trading on Monday. Currently there is 1 analyst who rates New Century Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

TheStreet Ratings rates New Century Bancorp as a buy. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had somewhat weak growth in earnings per share.

Highlights from TheStreet Ratings analysis on NCBC go as follows:

  • The gross profit margin for NEW CENTURY BANCORP INC is currently very high, coming in at 82.12%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, NCBC's net profit margin of 4.58% significantly trails the industry average.
  • NCBC, with its decline in revenue, slightly underperformed the industry average of 2.7%. Since the same quarter one year prior, revenues slightly dropped by 8.6%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Compared to where it was 12 months ago, the stock is up, but it has so far lagged the appreciation in the S&P 500. 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.
  • Net operating cash flow has decreased to $0.84 million or 38.62% when compared to the same quarter last year. Despite a decrease in cash flow of 38.62%, NEW CENTURY BANCORP INC is in line with the industry average cash flow growth rate of -42.15%.

You can view the full analysis from the report here: New Century Bancorp 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.

Porter Bancorp ( PBIB) was another company that pushed the Banking industry higher today. Porter Bancorp was up $0.02 (1.5%) to $0.99 on light volume. Throughout the day, 2,669 shares of Porter Bancorp exchanged hands as compared to its average daily volume of 9,400 shares. The stock ranged in a price between $0.99-$1.04 after having opened the day at $1.04 as compared to the previous trading day's close of $0.98.

Porter Bancorp, Inc. operates as the bank holding company for PBI Bank that provides commercial and personal banking products and services, and financial services in Central Kentucky and Louisville. Porter Bancorp has a market cap of $12.6 million and is part of the financial sector. Shares are down 3.4% year-to-date as of the close of trading on Monday. Currently there are no analysts who rate Porter Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Ratings rates Porter Bancorp as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PBIB go as follows:

  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Commercial Banks industry. The net income has significantly decreased by 315.9% when compared to the same quarter one year ago, falling from -$0.07 million to -$0.29 million.
  • Net operating cash flow has significantly decreased to -$0.28 million or 109.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Commercial Banks industry and the overall market, PORTER BANCORP INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PBIB, with its decline in revenue, underperformed when compared the industry average of 2.7%. Since the same quarter one year prior, revenues fell by 16.2%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • PORTER BANCORP INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. This company has not demonstrated a clear trend in earnings over the past 2 years, making it difficult to accurately predict earnings for the coming year. During the past fiscal year, PORTER BANCORP INC continued to lose money by earning -$0.28 versus -$2.83 in the prior year.

You can view the full analysis from the report here: Porter Bancorp 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.

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.

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