Story updated at 9:50 a.m. to reflect market activity.
BB&T fell -0.2% to $37.24 in morning trading.
The firm also lowered its EPS estimates for the company due to greater NIM compression and a lower starting point for core fees.
Must read: Warren Buffett's 25 Favorite Stocks
Separately, TheStreet Ratings team rates BB&T CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BB&T CORP (BBT) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its increase in net income, good cash flow from operations, expanding profit margins, increase in stock price during the past year and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 124.2% when compared to the same quarter one year prior, rising from $240.00 million to $538.00 million.
- Net operating cash flow has increased to $632.00 million or 35.91% when compared to the same quarter last year. In addition, BB&T CORP has also vastly surpassed the industry average cash flow growth rate of -98.56%.
- The gross profit margin for BB&T CORP is currently very high, coming in at 89.46%. 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 21.89% trails the industry average.
- 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, unless broad bear market conditions prevail, we still see more upside potential for this stock, despite the fact that it has already risen over the past year.
- BB&T CORP reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, BB&T CORP reported lower earnings of $2.18 versus $2.70 in the prior year. This year, the market expects an improvement in earnings ($2.99 versus $2.18).
- You can view the full analysis from the report here: BBT Ratings Report