Back to top

Analyst Blog

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at support@zacks.com or call 800-767-3771 ext.  9339.

On Jul 27, 2013, Zacks Investment Research upgraded Synovus Financial Corporation (SNV - Analyst Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

The recent clearance of TARP dues and strong second-quarter 2013 earnings should help it grow going forward. Additionally, the long-term earnings growth forecast for the company is 6.50%.

On Jul 26, Synovus redeemed $986 million of its Series A preferred stock issued to the U.S. Department of Treasury, thereby exiting the Troubled Asset Relief Program (TARP). Consequently, we expect Synovus to deploy its capital through dividend hike and share repurchase, which will enhance investors’ confidence in the stock. Notably, the TARP loan repayment will remove the restrictions on both financial and executives’ pay package flexibility that the company was subject to, on being a TARP participant.

Further, on Jul 18, Synovus reported second-quarter net income of $30.7 million, more than double compared with $14.8 million in the prior quarter. A decline in non-interest expense, improvement in credit quality and strong capital ratios depict the scope of sustainable profitability in the forthcoming quarters.

Moreover, over the last 30 days, Synovus’ Zacks Consensus Estimate for 2013 increased 27.3% to 14 cents per share. For 2014, the Zacks Consensus Estimate advanced 17.6% to 20 cents per share over the same time period.

Favorable estimate revisions driven by positive second-quarter results and TARP redemption made way for the rank upgrade.

Other Stocks to Consider

Apart from Synovus, other banks worth considering include Farmers Capital Bank Corp. (FFKT - Snapshot Report), First Bancorp (FBNC - Snapshot Report) and Fidelity Southern Corp. (LION - Snapshot Report). All these stocks carry a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
DIXIE GROUP DXYN 15.84 +7.90%
BOFL HOLDING BOFI 85.30 +4.97%
RAMBUS INC RMBS 12.31 +4.41%
VIPSHOP HOLD VIPS 148.73 +4.35%
NETFLIX INC NFLX 345.74 +4.32%