Back to top

Analyst Blog

Shares of Community Bank System Inc. (CBU - Snapshot Report) achieved a new 52-week high, touching $37.55 in the second half of the trading session on Nov 21, 2013. The stock closed the session at $37.51, registering a solid year-to-date return of 35.9%. The trading volume for the session was 0.14 million shares, higher than the average of 0.12 million over the last 3 months.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its estimate revisions over the last 30 days and expected long-term earnings growth of 9.9%.

Growth Drivers

Impressive third-quarter 2013 results comprising a positive earnings surprise of 3.9%, along with underlying strength in its balance sheet driven by restructuring initiatives were the primary growth drivers for Community Bank.

On Oct 21, Community Bank reported third-quarter results. The company’s earnings 54 cents per share outpaced the Zacks Consensus Estimate of 52 cents. Results benefited from top-line growth, partially offset by higher expenses.

Additionally, in July, Community Bank announced a deal to acquire 8 branch-banking locations from Bank of America, N.A, banking subsidiary of Bank of America Corporation (BAC - Analyst Report). The deal, which is expected to close by the end of this year, will add nearly $340 million in deposits to the company’s balance sheet.

Estimate Revisions

Over the last 30 days, 3 out of 4 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 1% to $2.08 per share. Similarly, for 2014, 3 out of 4 estimates moved north over the same time frame, causing the Zacks Consensus Estimate to rise by 1.4% to $2.14 per share.

Some better-ranked stocks in the finance sector include CNB Financial Corp. (CCNE - Snapshot Report) and Arrow Financial Corporation (AROW - Snapshot Report). Both these 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

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%