Regions Financial (RF) Off To A Strong Start In Pre-Market Activity

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.

Trade-Ideas LLC identified Regions Financial ( RF) as a pre-market leader candidate. In addition to specific proprietary factors, Trade-Ideas identified Regions Financial as such a stock due to the following factors:

  • RF has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $151.7 million.
  • RF traded 59,379 shares today in the pre-market hours as of 9:29 AM.
  • RF is up 2.7% today from yesterday's close.

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More details on RF:

Regions Financial Corporation, together with its subsidiaries, provides banking and bank-related services to individual and corporate customers in the United States. The stock currently has a dividend yield of 2.4%. RF has a PE ratio of 14. Currently there are 11 analysts that rate Regions Financial a buy, 2 analysts rate it a sell, and 9 rate it a hold.

The average volume for Regions Financial has been 16.8 million shares per day over the past 30 days. Regions Financial has a market cap of $13.6 billion and is part of the financial sector and banking industry. The stock has a beta of 1.38 and a short float of 1.2% with 1.05 days to cover. Shares are down 2.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Regions Financial as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins and increase in stock price during the past year. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • RF's revenue growth has slightly outpaced the industry average of 0.0%. Since the same quarter one year prior, revenues slightly increased by 0.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • REGIONS FINANCIAL CORP's earnings per share declined by 23.8% in the most recent quarter compared to the same quarter a year ago. Stable earnings per share over the past year indicate the company has sound management over its earnings and share float. We anticipate these figures will begin to experience more growth in the coming year. During the past fiscal year, REGIONS FINANCIAL CORP's EPS of $0.78 remained unchanged from the prior years' EPS of $0.78. This year, the market expects an improvement in earnings ($0.79 versus $0.78).
  • The gross profit margin for REGIONS FINANCIAL CORP is currently very high, coming in at 91.15%. Regardless of RF's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, RF's net profit margin of 17.25% is significantly lower than the industry average.
  • In its most recent trading session, RF 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. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • Net operating cash flow has decreased to $294.00 million or 30.16% when compared to the same quarter last year. In conjunction, when comparing current results to the industry average, REGIONS FINANCIAL CORP has marginally lower results.

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