We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
6 Reasons That Make Cambridge (CATC) Stock Investment Worthy
Read MoreHide Full Article
Despite the coronavirus outbreak-led chaos, it seems to be a wise idea to add Cambridge Bancorp (CATC - Free Report) to your portfolio at the moment. The factors that might drive the stock higher include impressive organic growth, efforts to grow presence and capital strength.
The company has been successful in gaining analysts’ confidence. Its current-year earnings estimates have been revised 21.4% upward over the past 30 days. As a result, the company currently carries a Zacks Rank #2 (Buy).
Shares of Cambridge have declined 25.1% over the past six months compared with the industry’s fall of 27.6%.
What Makes the Stock Attractive
Revenue Strength: The company has been witnessing consistent improvement in revenues. Over the past five years (ended 2019), total revenues recorded a compound annual growth rate (CAGR) of 10.4%.
Additionally, the upward trend is expected to continue in 2020 at a growth rate of 34.9%, with support from loan growth and Cambridge’s efforts to grow fee income.
Solid Inorganic Growth Strategies: Cambridge’s capital strength has been helping it to grow inorganically. As part of the strategy, the company recently completed the acquisition of Wellesley Bancorp and also acquired Optima Bank & Trust Company in April 2019. The deal bolstered Cambridge’s presence in the Greater Boston and New Hampshire.
Steady Capital Deployment Activities: The company remains committed to enhancing shareholder value. Notably, it has been raising the quarterly dividend every year since 2015. The recent hike was declared in January 2020 by 3.9% to 53 cents per share.
Impressive Balance Sheet Growth: Cambridge’s loans and deposits witnessed a CAGR of 16.9% and 10.9%, respectively, in a five-year period (ended 2019). Also, both loan and deposit balances are likely to continue improving.
Superior Return on Equity: The company has a return on equity of 10.25% compared with the industry average of 8.46%. This indicates that it is efficient in utilizing shareholder funds.
Strong Leverage: Cambridge’s debt/equity ratio is 0.13 compared with the industry average of 0.36. The relatively strong financial health of the company will likely help it perform better than its peers under an unstable business environment.
Other Stocks to Consider
Independent Bank Corporation’s (IBCP - Free Report) current-year earnings estimates have moved 37.4% north in the past 60 days. Further, the company’s shares have declined 36.6% in the year-to-date period. At present, it has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Old Second Bancorp (OSBC - Free Report) has witnessed an upward earnings estimate revision of nearly 40% for 2020 in the past 60 days. Moreover, the Zacks Rank #2 stock has lost 39.8% in the year-to-date period.
First Western Financial’s (MYFW - Free Report) earnings estimates have moved significantly upward for 2020 in the past 60 days. Moreover, the Zacks #1 Ranked stock has lost 15.2% in the year-to-date period.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
6 Reasons That Make Cambridge (CATC) Stock Investment Worthy
Despite the coronavirus outbreak-led chaos, it seems to be a wise idea to add Cambridge Bancorp (CATC - Free Report) to your portfolio at the moment. The factors that might drive the stock higher include impressive organic growth, efforts to grow presence and capital strength.
The company has been successful in gaining analysts’ confidence. Its current-year earnings estimates have been revised 21.4% upward over the past 30 days. As a result, the company currently carries a Zacks Rank #2 (Buy).
Shares of Cambridge have declined 25.1% over the past six months compared with the industry’s fall of 27.6%.
What Makes the Stock Attractive
Revenue Strength: The company has been witnessing consistent improvement in revenues. Over the past five years (ended 2019), total revenues recorded a compound annual growth rate (CAGR) of 10.4%.
Additionally, the upward trend is expected to continue in 2020 at a growth rate of 34.9%, with support from loan growth and Cambridge’s efforts to grow fee income.
Solid Inorganic Growth Strategies: Cambridge’s capital strength has been helping it to grow inorganically. As part of the strategy, the company recently completed the acquisition of Wellesley Bancorp and also acquired Optima Bank & Trust Company in April 2019. The deal bolstered Cambridge’s presence in the Greater Boston and New Hampshire.
Steady Capital Deployment Activities: The company remains committed to enhancing shareholder value. Notably, it has been raising the quarterly dividend every year since 2015. The recent hike was declared in January 2020 by 3.9% to 53 cents per share.
Impressive Balance Sheet Growth: Cambridge’s loans and deposits witnessed a CAGR of 16.9% and 10.9%, respectively, in a five-year period (ended 2019). Also, both loan and deposit balances are likely to continue improving.
Superior Return on Equity: The company has a return on equity of 10.25% compared with the industry average of 8.46%. This indicates that it is efficient in utilizing shareholder funds.
Strong Leverage: Cambridge’s debt/equity ratio is 0.13 compared with the industry average of 0.36. The relatively strong financial health of the company will likely help it perform better than its peers under an unstable business environment.
Other Stocks to Consider
Independent Bank Corporation’s (IBCP - Free Report) current-year earnings estimates have moved 37.4% north in the past 60 days. Further, the company’s shares have declined 36.6% in the year-to-date period. At present, it has a Zacks Rank of 2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Old Second Bancorp (OSBC - Free Report) has witnessed an upward earnings estimate revision of nearly 40% for 2020 in the past 60 days. Moreover, the Zacks Rank #2 stock has lost 39.8% in the year-to-date period.
First Western Financial’s (MYFW - Free Report) earnings estimates have moved significantly upward for 2020 in the past 60 days. Moreover, the Zacks #1 Ranked stock has lost 15.2% in the year-to-date period.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>