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 First Republic Bank ( FRC) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified First Republic Bank as such a stock due to the following factors:

  • FRC has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $60.0 million.
  • FRC has traded 82,017 shares today.
  • FRC is up 3.4% today.
  • FRC was down 15.1% yesterday.

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More details on FRC:

First Republic Bank, together with its subsidiaries, provides personalized, relationship-based preferred banking, preferred business banking, real estate lending, trust, and wealth management services to clients in metropolitan areas of the United States. The stock currently has a dividend yield of 1%. FRC has a PE ratio of 20.9. Currently there are 8 analysts that rate First Republic Bank a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for First Republic Bank has been 774,700 shares per day over the past 30 days. First Republic has a market cap of $7.2 billion and is part of the financial sector and banking industry. Shares are up 5.1% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

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

Highlights from the ratings report include:
  • FRC's revenue growth has slightly outpaced the industry average of 2.6%. Since the same quarter one year prior, revenues slightly increased by 5.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Compared to its closing price of one year ago, FRC's share price has jumped by 37.11%, exceeding the performance of the broader market during that same time frame. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • Net operating cash flow has significantly increased by 116.80% to $17.39 million when compared to the same quarter last year. In addition, FIRST REPUBLIC BANK has also vastly surpassed the industry average cash flow growth rate of -42.40%.
  • The gross profit margin for FIRST REPUBLIC BANK is currently very high, coming in at 89.55%. Regardless of FRC's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, the net profit margin of 27.41% trails the industry average.
  • FIRST REPUBLIC BANK's earnings per share declined by 14.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, FIRST REPUBLIC BANK increased its bottom line by earning $3.12 versus $2.76 in the prior year. For the next year, the market is expecting a contraction of 0.9% in earnings ($3.09 versus $3.12).

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