NEW YORK (TheStreet) -- Shares of Argentina-based Banco Macro SA (BMA) are down by -6.74% to $41.91 in early afternoon trading on Thursday, as Argentine stocks take a hit after the country defaulted on its debt for the second time in 13 years.
Creditors from the U.S. and Argentina were in talks to try and keep the country from defaulting, but discussions broke down late Wednesday afternoon, USA Today reports.
Other stocks falling as a result of the default include BBVA Banco Frances (BFR), down by -7.61% to $12.87, Grupo Financiero Galicia (GGAL), lower by -7.13% to $15.75, and YPF SA (YPF), down by -8.74% to $35.61.
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Separately, TheStreet Ratings team rates BANCO MACRO SA as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate BANCO MACRO SA (BMA) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel these strengths outweigh the fact that the company shows weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 15.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
- 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, BANCO MACRO SA's return on equity significantly exceeds that of both the industry average and the S&P 500.
- Powered by its strong earnings growth of 67.32% and other important driving factors, this stock has surged by 180.98% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BMA should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- BANCO MACRO SA reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BANCO MACRO SA increased its bottom line by earning $6.44 versus $5.19 in the prior year. This year, the market expects an improvement in earnings ($6.73 versus $6.44).
- 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 67.0% when compared to the same quarter one year prior, rising from $89.48 million to $149.48 million.
- You can view the full analysis from the report here: BMA Ratings Report