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NEW YORK (TheStreet) -- 1st Constitution Bancorp (FCCY) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate 1ST CONSTITUTION BANCORP (FCCY) 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 revenue growth, increase in net income, expanding profit margins and growth in earnings per share. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
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Highlights from the analysis by TheStreet Ratings Team goes as follows:
- The revenue growth came in higher than the industry average of 5.6%. Since the same quarter one year prior, revenues rose by 29.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The net income growth from the same quarter one year ago has greatly exceeded that of the S&P 500, but is less than that of the Commercial Banks industry average. The net income increased by 40.4% when compared to the same quarter one year prior, rising from $1.52 million to $2.14 million.
- The gross profit margin for 1ST CONSTITUTION BANCORP is currently very high, coming in at 84.19%. 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 18.40% trails the industry average.
- 1ST CONSTITUTION BANCORP has improved earnings per share by 20.0% 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. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, 1ST CONSTITUTION BANCORP increased its bottom line by earning $0.94 versus $0.90 in the prior year. For the next year, the market is expecting a contraction of 23.4% in earnings ($0.72 versus $0.94).
- In its most recent trading session, FCCY has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Despite the stock's decline during the last year, it is still somewhat more expensive (in proportion to its earnings over the last year) than most other stocks in its industry. We feel, however, that other strengths this company displays offset this slight negative.
- You can view the full analysis from the report here: FCCY Ratings Report
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