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Shares of City National Corporation (CYN - Snapshot Report) crafted a new 52-week high, touching $76.78 at the end of the trading session on Nov 22. However, this banking, trust, and investment services provider closed the session at $76.74, which reflects a solid year-to-date return of 51.8%. The trading volume for the session was 187,465 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 10.33%.

Growth Drivers

Impressive third-quarter 2013 results – including a positive earnings surprise of 10.0%, and improved credit quality – as well as a strong capital position were the primary growth drivers for City National Corporation.

On Oct 24, City National Corporation reported its third-quarter 2013 earnings of $1.10 per share, outpacing the Zacks Consensus Estimate of $1.00 by 10.0%. However, results were in line with the prior-year quarter earnings.

A year-over-year increase of 2.3% in net interest income, no provision for loan losses and a rise in deposits and loans were the tailwinds for the quarter. Moreover, the company’s capital ratios depict its strong position. However, a 17.0% fall in non-interest income and 1.0% rise in non-interest expenses acted as the headwinds for the quarter.

Estimate Revisions Show Potency

Over the last 30 days, 14 of the 15 estimates for 2013 have been revised upward for City National Corporation, lifting the Zacks Consensus Estimate by 3.3% to $4.11 per share. For 2014, 14 out of 16 estimates moved north, helping the Zacks Consensus Estimate advance 3.0% to $4.15 per share.

Investors interested in the banking industry may consider stocks like Glacier Bancorp Inc. (GBCI - Snapshot Report), TriCo Bancshares (TCBK - Snapshot Report) and Preferred Bank (PFBC - Snapshot Report). All of which carry a Zacks Rank #1 (Strong Buy).

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