3 Stocks Pushing The Banking Industry Lower

The Banking industry as a whole closed the day down 0.1% versus the S&P 500, which was down 0.2%. Laggards within the Banking industry included First Community Financial Partners ( FCFP), down 4.6%, Plumas Bancorp ( PLBC), down 4.3%, HMN Financial ( HMNF), down 1.9%, Timberland Bancorp ( TSBK), down 1.9% and Bay Bancorp ( BYBK), down 1.8%.

TheStreet Ratings Group would like to highlight 3 stocks that pushed the industry lower today:

Servisfirst ( SFBS) is one of the companies that pushed the Banking industry lower today. Servisfirst was down $0.79 (2.0%) to $38.60 on light volume. Throughout the day, 45,727 shares of Servisfirst exchanged hands as compared to its average daily volume of 124,000 shares. The stock ranged in price between $36.28-$39.16 after having opened the day at $39.16 as compared to the previous trading day's close of $39.39.

ServisFirst Bancshares, Inc. operates as the bank holding company for ServisFirst Bank that provides banking services to individual and corporate customers. Servisfirst has a market cap of $1.0 billion and is part of the financial sector. Shares are up 19.5% year-to-date as of the close of trading on Monday. Currently there are 3 analysts who rate Servisfirst a buy, no analysts rate it a sell, and none rate it a hold.

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TheStreet Ratings rates Servisfirst as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, compelling growth in net income and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and feeble growth in the company's earnings per share.

Highlights from TheStreet Ratings analysis on SFBS go as follows:

  • The revenue growth came in higher than the industry average of 3.0%. Since the same quarter one year prior, revenues rose by 24.4%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 24.9% when compared to the same quarter one year prior, going from $11.59 million to $14.47 million.
  • 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 Commercial Banks industry and the overall market on the basis of return on equity, SERVISFIRST BANCSHARES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • SERVISFIRST BANCSHARES INC has improved earnings per share by 14.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, SERVISFIRST BANCSHARES INC reported lower earnings of $3.02 versus $5.69 in the prior year. For the next year, the market is expecting a contraction of 25.2% in earnings ($2.26 versus $3.02).
  • Net operating cash flow has decreased to $13.15 million or 34.45% 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: Servisfirst Ratings Report

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At the close, Timberland Bancorp ( TSBK) was down $0.20 (1.9%) to $10.50 on light volume. Throughout the day, 3,000 shares of Timberland Bancorp exchanged hands as compared to its average daily volume of 4,600 shares. The stock ranged in price between $10.34-$10.70 after having opened the day at $10.35 as compared to the previous trading day's close of $10.70.

Timberland Bancorp, Inc. operates as the bank holding company for Timberland Bank that provides various banking services in Washington. Timberland Bancorp has a market cap of $76.6 million and is part of the financial sector. Shares are up 0.9% year-to-date as of the close of trading on Monday.

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TheStreet Ratings rates Timberland Bancorp as a buy. 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, attractive valuation levels and expanding profit margins. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from TheStreet Ratings analysis on TSBK go as follows:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues rose by 10.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • TIMBERLAND BANCORP INC 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. During the past fiscal year, TIMBERLAND BANCORP INC increased its bottom line by earning $0.79 versus $0.58 in the prior year.
  • 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 50.5% when compared to the same quarter one year prior, rising from $1.43 million to $2.16 million.
  • The gross profit margin for TIMBERLAND BANCORP INC is currently very high, coming in at 90.80%. 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 20.62% trails the industry average.

You can view the full analysis from the report here: Timberland Bancorp Ratings Report

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HMN Financial ( HMNF) was another company that pushed the Banking industry lower today. HMN Financial was down $0.22 (1.9%) to $11.40 on average volume. Throughout the day, 2,318 shares of HMN Financial exchanged hands as compared to its average daily volume of 2,200 shares. The stock ranged in price between $11.40-$11.51 after having opened the day at $11.49 as compared to the previous trading day's close of $11.62.

HMN Financial, Inc. operates as the holding company for Home Federal Savings Bank that provides community banking products and services in Minnesota, Iowa, and Wisconsin. HMN Financial has a market cap of $50.5 million and is part of the financial sector. Shares are down 6.3% year-to-date as of the close of trading on Monday.

TheStreet Ratings rates HMN Financial as a hold. The company's strengths can be seen in multiple areas, such as its revenue growth, reasonable valuation levels and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and disappointing return on equity.

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Highlights from TheStreet Ratings analysis on HMNF go as follows:

  • The revenue growth came in higher than the industry average of 9.5%. Since the same quarter one year prior, revenues slightly increased by 2.9%. 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.
  • The gross profit margin for HMN FINANCIAL INC is currently very high, coming in at 97.00%. Despite the high profit margin, it has decreased significantly from the same period last year. Despite the mixed results of the gross profit margin, HMNF's net profit margin of 8.43% is significantly lower than the industry average.
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Thrifts & Mortgage Finance industry. The net income has significantly decreased by 76.9% when compared to the same quarter one year ago, falling from $2.53 million to $0.59 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. When compared to other companies in the Thrifts & Mortgage Finance industry and the overall market, HMN FINANCIAL INC'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: HMN Financial Ratings Report

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