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NEW YORK (TheStreet) -- OceanFirst Financial (OCFC) has been upgraded by TheStreet Ratings from Hold to Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:
"We rate OCEANFIRST FINANCIAL CORP (OCFC) a BUY. This is driven by a few notable 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and notable return on equity. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- OCFC's revenue growth has slightly outpaced the industry average of 5.3%. Since the same quarter one year prior, revenues slightly increased by 1.8%. Growth in the company's revenue appears to have helped boost the earnings per share.
- OCEANFIRST FINANCIAL CORP 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, OCEANFIRST FINANCIAL CORP increased its bottom line by earning $1.19 versus $0.95 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $1.19).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income increased by 154.5% when compared to the same quarter one year prior, rising from $1.94 million to $4.93 million.
- The gross profit margin for OCEANFIRST FINANCIAL CORP is currently very high, coming in at 88.38%. Regardless of OCFC'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 19.97% trails the industry average.
- 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. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, OCEANFIRST FINANCIAL CORP's return on equity is below that of both the industry average and the S&P 500.
- You can view the full analysis from the report here: OCFC Ratings Report