3 Banking Stocks Pushing The 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 are trading down today with the Dow Jones Industrial Average ( ^DJI) trading down 61.49 points (-0.4%) at 16,988 as of Friday, Sept. 12, 2014, 4:20 PM ET. The NYSE advances/declines ratio sits at 638 issues advancing vs. 2,470 declining with 106 unchanged.

The Banking industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.6%. Top gainers within the Banking industry included Glen Burnie Bancorp ( GLBZ), up 3.2%, Porter Bancorp ( PBIB), up 5.0%, Magyar Bancorp ( MGYR), up 5.5%, Community Financial ( TCFC), up 2.4% and 1st Century Bancshrs ( FCTY), up 1.8%.

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

Community Financial ( TCFC) is one of the companies that pushed the Banking industry higher today. Community Financial was up $0.52 (2.4%) to $21.92 on light volume. Throughout the day, 197 shares of Community Financial exchanged hands as compared to its average daily volume of 1,100 shares. The stock ranged in a price between $21.92-$21.92 after having opened the day at $21.92 as compared to the previous trading day's close of $21.40.

Community Financial has a market cap of $100.3 million and is part of the financial sector. Shares are up 3.3% year-to-date as of the close of trading on Thursday.

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At the close, Magyar Bancorp ( MGYR) was up $0.46 (5.5%) to $8.89 on light volume. Throughout the day, 1,570 shares of Magyar Bancorp exchanged hands as compared to its average daily volume of 2,100 shares. The stock ranged in a price between $8.60-$8.90 after having opened the day at $8.65 as compared to the previous trading day's close of $8.43.

Magyar Bancorp, Inc. operates as the bank holding company for Magyar Bank that provides various banking products and services in New Jersey. Magyar Bancorp has a market cap of $52.9 million and is part of the financial sector. Shares are up 22.0% year-to-date as of the close of trading on Thursday. Currently there are no analysts who rate Magyar Bancorp a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Magyar Bancorp as a hold. The company's strengths can be seen in multiple areas, such as its expanding profit margins, notable return on equity and increase in stock price during the past year. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow, feeble growth in the company's earnings per share and unimpressive growth in net income.

Highlights from TheStreet Ratings analysis on MGYR go as follows:

  • The gross profit margin for MAGYAR BANCORP INC is currently very high, coming in at 77.01%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, MGYR's net profit margin of 3.63% significantly trails the industry average.
  • Regardless of the drop in revenue, the company managed to outperform against the industry average of 12.6%. Since the same quarter one year prior, revenues slightly dropped by 3.0%. Weakness in the company's revenue seems to not be hurting the bottom line, shown by stable earnings per share.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Thrifts & Mortgage Finance industry and the overall market on the basis of return on equity, MAGYAR BANCORP INC underperformed against that of the industry average and is significantly less than that of the S&P 500.
  • MAGYAR BANCORP INC reported flat earnings per share in the most recent quarter. The company has suffered a declining pattern earnings per share over the past two years. During the past fiscal year, MAGYAR BANCORP INC reported lower earnings of $0.04 versus $0.09 in the prior year.
  • Net operating cash flow has decreased to $1.47 million or 22.99% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.

You can view the full analysis from the report here: Magyar 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 $0.05 (5.0%) to $1.06 on light volume. Throughout the day, 3,531 shares of Porter Bancorp exchanged hands as compared to its average daily volume of 13,700 shares. The stock ranged in a price between $1.05-$1.09 after having opened the day at $1.09 as compared to the previous trading day's close of $1.01.

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 $13.0 million and is part of the financial sector. Shares are up 0.1% year-to-date as of the close of trading on Thursday. 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 generally disappointing historical performance in the stock itself and weak operating cash flow.

Highlights from TheStreet Ratings analysis on PBIB go as follows:

  • PBIB's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 35.67%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • Net operating cash flow has decreased to $1.43 million or 41.08% when compared to the same quarter last year. Despite a decrease in cash flow of 41.08%, PORTER BANCORP INC is still significantly exceeding the industry average of -97.19%.
  • 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.
  • The gross profit margin for PORTER BANCORP INC is currently very high, coming in at 77.04%. Regardless of PBIB's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, PBIB's net profit margin of 0.38% is significantly lower than the industry average.
  • PBIB, with its decline in revenue, slightly underperformed the industry average of 12.9%. Since the same quarter one year prior, revenues fell by 16.5%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.

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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