12 Mid-Cap Financial Services Stocks to Buy

NEW YORK (TheStreet) -- With the banks reporting earnings this week, it could be a good time to invest. Looking through TheStreet Quant Ratings, TheStreet's proprietary quant-based stock-rating tool, we picked the twelve best mid-cap financial services companies, which are all A+ rated.

The Street Quant Ratings rates every one of these stocks an A+. These stocks were chosen from 4,300 different types of equities we rate.

TheStreet Ratings projects a stock's total return potential over a 12-month period including both price appreciation and dividends. Based on 32 major data points, TheStreet Ratings uses a quantitative approach to rating over 4,300 stocks to predict return potential for the next year. The model is both objective, using elements such as volatility of past operating revenues, financial strength, and company cash flows, and subjective, including expected equities market returns, future interest rates, implied industry outlook and forecasted company earnings.

Buying an S&P 500 stock that TheStreet Ratings rated a buy yielded a 16.56% return in 2014, beating the S&P 500 Total Return Index by 304 basis points. Buying a Russell 2000 stock that TheStreet Ratings rated a buy yielded a 9.5% return in 2014, beating the Russell 2000 index, including dividends reinvested, by 460 basis points last year.

Check out which stocks made the list. And when you're done, be sure to read about which safe, A+ rated stocks you should buy now. Year-to-date returns are based on October 13, 2015 closing prices.

PFBC Chart PFBC data by YCharts
12. Preferred Bank (PFBC)

Rating: Buy, A+
Market Cap: $421.2 million
Year-to-date return: 9.75%

Preferred Bank provides various commercial banking products and services to small and mid-sized businesses and their owners, entrepreneurs, real estate developers and investors, professionals, and high net worth individuals in the United States.

TheStreet Ratings team rates PREFERRED BANK LOS ANGELES as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate PREFERRED BANK LOS ANGELES (PFBC) 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 robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income 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 the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 19.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.99% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, PFBC should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • PREFERRED BANK LOS ANGELES has improved earnings per share by 22.2% 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, PREFERRED BANK LOS ANGELES increased its bottom line by earning $1.79 versus $1.43 in the prior year. This year, the market expects an improvement in earnings ($2.10 versus $1.79).
  • 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 22.2% when compared to the same quarter one year prior, going from $6.21 million to $7.59 million.
  • The gross profit margin for PREFERRED BANK LOS ANGELES is currently very high, coming in at 87.65%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.38% significantly outperformed against the industry average.
  • You can view the full analysis from the report here: PFBC

HFWA Chart HFWA data by YCharts
11. Heritage Financial Corporation (HFWA)

Rating: Buy, A+
Market Cap: $567.7 million
Year-to-date return: 7.98%

Heritage Financial Corporation operates as the bank holding company for Heritage Bank that provides various financial services to small businesses and general public.

TheStreet Ratings team rates HERITAGE FINANCIAL CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate HERITAGE FINANCIAL CORP (HFWA) 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 robust revenue growth, impressive record of earnings per share growth, compelling growth in net income, solid stock price performance and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 17.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HERITAGE 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 year. We feel that this trend should continue. During the past fiscal year, HERITAGE FINANCIAL CORP increased its bottom line by earning $0.79 versus $0.61 in the prior year. This year, the market expects an improvement in earnings ($1.21 versus $0.79).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 110.3% when compared to the same quarter one year prior, rising from $4.15 million to $8.73 million.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.
  • Net operating cash flow has significantly increased by 1264.31% to $18.20 million when compared to the same quarter last year. Despite an increase in cash flow of 1264.31%, HERITAGE FINANCIAL CORP is still growing at a significantly lower rate than the industry average of 3018.12%.
  • You can view the full analysis from the report here: HFWA

STC Chart STC data by YCharts
10. Stewart Information Services Corporation (STC)

Rating: Buy, A+
Market Cap: $980.8 million
Year-to-date return: 13.71%

Stewart Information Services Corporation provides title insurance and real estate services worldwide.

TheStreet Ratings team rates STEWART INFORMATION SERVICES as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate STEWART INFORMATION SERVICES (STC) 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, largely solid financial position with reasonable debt levels by most measures, compelling growth in net income, good cash flow from operations and solid stock price performance. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 12.5%. Since the same quarter one year prior, revenues rose by 18.7%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • STC's debt-to-equity ratio is very low at 0.13 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 172.5% when compared to the same quarter one year prior, rising from $6.28 million to $17.11 million.
  • Net operating cash flow has significantly increased by 77.44% to $32.44 million when compared to the same quarter last year. In addition, STEWART INFORMATION SERVICES has also vastly surpassed the industry average cash flow growth rate of -45.63%.
  • Powered by its strong earnings growth of 166.66% and other important driving factors, this stock has surged by 52.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: STC

FRME Chart FRME data by YCharts
9. First Merchants Corporation (FRME)

Rating: Buy, A+
Market Cap: $985.7 million
Year-to-date return: 14.46%

First Merchants Corporation operates as the financial holding company for First Merchants Bank, National Association that provides community banking services.

TheStreet Ratings team rates FIRST MERCHANTS CORP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate FIRST MERCHANTS CORP (FRME) 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, solid stock price performance, growth in earnings per share, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • FRME's revenue growth has slightly outpaced the industry average of 1.2%. Since the same quarter one year prior, revenues slightly increased by 5.7%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 26.50% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FRME should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • FIRST MERCHANTS CORP has improved earnings per share by 14.6% 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, FIRST MERCHANTS CORP increased its bottom line by earning $1.65 versus $1.41 in the prior year. This year, the market expects an improvement in earnings ($1.77 versus $1.65).
  • 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 18.5% when compared to the same quarter one year prior, going from $15.16 million to $17.97 million.
  • The gross profit margin for FIRST MERCHANTS CORP is currently very high, coming in at 90.80%. Regardless of FRME's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, FRME's net profit margin of 25.10% compares favorably to the industry average.
  • You can view the full analysis from the report here: FRME

UVE Chart UVE data by YCharts
8. Universal Insurance Holdings, Inc. (UVE)

Rating: Buy, A+
Market Cap: $1.2 billion
Year-to-date return: 66.01%

Universal Insurance Holdings, Inc., through its subsidiaries, provides various property and casualty insurance products. The company primarily underwrites homeowners' insurance products; and offers reinsurance intermediary brokerage services.

TheStreet Ratings team rates UNIVERSAL INSURANCE HLDGS as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate UNIVERSAL INSURANCE HLDGS (UVE) 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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, solid stock price performance and impressive record of earnings per share growth. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth greatly exceeded the industry average of 12.5%. Since the same quarter one year prior, revenues rose by 42.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • UVE's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • 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 Insurance industry and the overall market, UNIVERSAL INSURANCE HLDGS's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 40.81% and other important driving factors, this stock has surged by 150.19% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, UVE should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • UNIVERSAL INSURANCE HLDGS has improved earnings per share by 40.8% 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, UNIVERSAL INSURANCE HLDGS increased its bottom line by earning $2.07 versus $1.57 in the prior year. This year, the market expects an improvement in earnings ($2.56 versus $2.07).
  • You can view the full analysis from the report here: UVE

SFNC Chart SFNC data by YCharts
7. Simmons First National Corporation (SFNC)

Rating: Buy, A+
Market Cap: $1.4 billion
Year-to-date return: 17.93%

Simmons First National Corporation, through its subsidiaries, provides a range of banking products and services to individual and corporate customers in Arkansas, Missouri, and Kansas. Its deposit products include checking, savings, and time deposits.

TheStreet Ratings team rates SIMMONS FIRST NATL CP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate SIMMONS FIRST NATL CP (SFNC) 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 robust revenue growth, growth in earnings per share, compelling growth in net income, expanding profit margins and good cash flow from operations. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • SFNC's very impressive revenue growth greatly exceeded the industry average of 1.2%. Since the same quarter one year prior, revenues leaped by 86.6%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • SIMMONS FIRST NATL CP has improved earnings per share by 11.7% 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, SIMMONS FIRST NATL CP increased its bottom line by earning $2.11 versus $1.42 in the prior year. This year, the market expects an improvement in earnings ($3.10 versus $2.11).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 102.8% when compared to the same quarter one year prior, rising from $9.91 million to $20.10 million.
  • The gross profit margin for SIMMONS FIRST NATL CP is currently very high, coming in at 91.42%. 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 19.23% trails the industry average.
  • Net operating cash flow has significantly increased by 183.11% to $1.12 million when compared to the same quarter last year. Despite an increase in cash flow of 183.11%, SIMMONS FIRST NATL CP is still growing at a significantly lower rate than the industry average of 3018.12%.
  • You can view the full analysis from the report here: SFNC

FFG Chart FFG data by YCharts
6. FBL Financial Group, Inc. (FFG)

Rating: Buy, A+
Market Cap: $1.5 billion
Year-to-date return: 7.36%

FBL Financial Group, Inc., through its subsidiary, Farm Bureau Life Insurance Company, sells individual life insurance and annuity products principally under the consumer brand name, Farm Bureau Financial Services. The company operates through Annuity and Life Insurance Product segments.

TheStreet Ratings team rates FBL FINANCIAL GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate FBL FINANCIAL GROUP INC (FFG) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, increase in net income and notable return on equity. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 6.2%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • FFG's debt-to-equity ratio is very low at 0.08 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 39.18% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, FFG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 13.0% when compared to the same quarter one year prior, going from $28.64 million to $32.37 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 Insurance industry and the overall market on the basis of return on equity, FBL FINANCIAL GROUP INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • You can view the full analysis from the report here: FFG

AGII Chart AGII data by YCharts
5. Argo Group International Holdings, Ltd. (AGII)

Rating: Buy, A+
Market Cap: $1.7 billion
Year-to-date return: 8.55%

Argo Group International Holdings, Ltd. underwrites specialty insurance and reinsurance products in the property and casualty market worldwide.

TheStreet Ratings team rates ARGO GROUP INTL HOLDINGS LTD as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate ARGO GROUP INTL HOLDINGS LTD (AGII) 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 solid stock price performance, largely solid financial position with reasonable debt levels by most measures, attractive valuation levels, good cash flow from operations and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • Compared to its closing price of one year ago, AGII's share price has jumped by 27.84%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, although almost any stock can fall in a broad market decline, AGII should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • Although AGII's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average.
  • Net operating cash flow has significantly increased by 199.85% to $67.00 million when compared to the same quarter last year. In addition, ARGO GROUP INTL HOLDINGS LTD has also vastly surpassed the industry average cash flow growth rate of -45.63%.
  • 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 Insurance industry and the overall market on the basis of return on equity, ARGO GROUP INTL HOLDINGS LTD has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • You can view the full analysis from the report here: AGII

HOMB Chart HOMB data by YCharts
4. Home BancShares, Inc. (HOMB)

Rating: Buy, A+
Market Cap: $2.9 billion
Year-to-date return: 27.83%

Home BancShares, Inc. operates as a bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities.

TheStreet Ratings team rates HOME BANCSHARES INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate HOME BANCSHARES INC (HOMB) 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, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 1.2%. Since the same quarter one year prior, revenues rose by 14.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HOME BANCSHARES INC has improved earnings per share by 16.3% 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, HOME BANCSHARES INC increased its bottom line by earning $1.70 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($2.03 versus $1.70).
  • 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 19.3% when compared to the same quarter one year prior, going from $28.43 million to $33.91 million.
  • The gross profit margin for HOME BANCSHARES INC is currently very high, coming in at 90.46%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 31.58% significantly outperformed against the industry average.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 41.48% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • You can view the full analysis from the report here: HOMB

THG Chart THG data by YCharts
3. Hanover Insurance Group, Inc. (THG)

Rating: Buy, A+
Market Cap: $3.5 billion
Year-to-date return: 12.24%

The Hanover Insurance Group, Inc., through its subsidiaries, provides various property and casualty insurance products and services in the United States and internationally. It operates through four segments: Commercial Lines, Personal Lines, Chaucer, and Other.

TheStreet Ratings team rates HANOVER INSURANCE GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate HANOVER INSURANCE GROUP INC (THG) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and attractive valuation levels. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 1.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although THG's debt-to-equity ratio of 0.29 is very low, it is currently higher than that of the industry average.
  • Powered by its strong earnings growth of 46.19% and other important driving factors, this stock has surged by 29.25% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, THG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 46.1% when compared to the same quarter one year prior, rising from $82.60 million to $120.70 million.
  • You can view the full analysis from the report here: THG

FAF Chart FAF data by YCharts
2. First American Financial Corporation (FAF)

Rating: Buy, A+
Market Cap: $4.4 billion
Year-to-date return: 18.97%

First American Financial Corporation, through its subsidiaries, provides financial services. It operates through Title Insurance and Services, and Specialty Insurance segments.

TheStreet Ratings team rates FIRST AMERICAN FINANCIAL CP as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate FIRST AMERICAN FINANCIAL CP (FAF) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. We feel its strengths outweigh the fact that the company shows low profit margins.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues rose by 15.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although FAF's debt-to-equity ratio of 0.22 is very low, it is currently higher than that of the industry average.
  • Powered by its strong earnings growth of 80.85% and other important driving factors, this stock has surged by 50.00% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year.
  • FIRST AMERICAN FINANCIAL CP 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 year. We feel that this trend should continue. During the past fiscal year, FIRST AMERICAN FINANCIAL CP increased its bottom line by earning $2.15 versus $1.71 in the prior year. This year, the market expects an improvement in earnings ($2.69 versus $2.15).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 84.5% when compared to the same quarter one year prior, rising from $50.59 million to $93.35 million.
  • You can view the full analysis from the report here: FAF

SFG Chart SFG data by YCharts
1. StanCorp Financial Group, Inc. (SFG)

Rating: Buy, A+
Market Cap: $4.9 billion
Year-to-date return: 63.90%

StanCorp Financial Group, Inc., through its subsidiaries, provides financial products and services in the United States. The company operates in two segments, Insurance Services and Asset Management.

TheStreet Ratings team rates STANCORP FINANCIAL GROUP INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

We rate STANCORP FINANCIAL GROUP INC (SFG) 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, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 12.5%. Since the same quarter one year prior, revenues slightly increased by 3.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Although SFG's debt-to-equity ratio of 0.23 is very low, it is currently higher than that of the industry average.
  • Powered by its strong earnings growth of 61.29% and other important driving factors, this stock has surged by 82.16% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SFG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Insurance industry. The net income increased by 57.6% when compared to the same quarter one year prior, rising from $40.80 million to $64.30 million.
  • STANCORP FINANCIAL GROUP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, STANCORP FINANCIAL GROUP INC reported lower earnings of $4.98 versus $5.13 in the prior year. This year, the market expects an improvement in earnings ($5.75 versus $4.98).
  • You can view the full analysis from the report here: SFG

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