Back to top

Analyst Blog

On Aug 31, Zacks Investment Research upgraded Eagle Bancorp, Inc. (EGBN - Snapshot Report) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Eagle Bancorp has been witnessing rising earnings estimates on the back of strong second-quarter 2013 results. Moreover, this well-known commercial and consumer banking services provider delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 9.7%. The long-term expected earnings growth rate for this stock is 12%.

Eagle Bancorp reported its second-quarter results on Jul 22 with earnings per share of 44 cents, beating the Zacks Consensus Estimate of 42 cents by 4.8% and the year-ago earnings of 33 cents by 33.3%. Robust results for the reported quarter were primarily aided by elevated net revenue and lower provisions for loan losses, partially offset by elevated non-interest expenses.

Net revenue surged 18.6% year over year to $42 million. This upsurge reflected growth in net interest and non-interest income. Provision for credit losses substantially declined 45.5% year over year to $2.4 million.

However, on the downside, expenses increased 11.9% to $20.7 million for Eagle Bancorp, as compared with the prior-year period. Higher salaries along with elevated employee benefits primarily drove the increase.

Following second-quarter 2013 results, the Zacks Consensus Estimate for 2013 increased 4.2% to $1.75 per share, over the last 60 days. For 2014, the Zacks Consensus Estimate advanced 6.7% to $1.91 per share over the same time period.

Other Stocks to Consider

Besides Eagle Bancorp, other Northeast banks with a Zacks Rank #1 include Signature Bank (SBNY - Snapshot Report), Metro Bancorp, Inc. and Webster Financial Corp. (WBS - Snapshot Report).

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

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
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%