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.
5 Reasons to Snap Up UMB Financial (UMBF) Stock Presently
Read MoreHide Full Article
It seems to be a wise idea to invest in UMB Financial Corporation (UMBF - Free Report) stock right now. Among others, the company’s robust fundamentals and solid earnings growth prospects are supporting factors.
The company is well-poised for revenue growth, driven by continued efforts to diversify non-interest income sources, and rising loans and deposits, which will support top-line growth in the quarters ahead.
Its current-year earnings estimates have been revised 3.6% upward over the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
The stock has been performing well. So far this year, shares of UMB Financial have rallied 31.8%, outperforming the rise of 9.3% for the industry it belongs to.
Image Source: Zacks Investment Research
What Makes UMB Financial Investment Worthy
Fee-Income Strength: The company has been focused on diversifying operations to non-interest sources of revenues in order to reduce exposure to interest rates to balance the unprecedented risks related to the rate environment. For the five-year period ended in 2020, fee income witnessed a CAGR of 8.6%, with the increasing trend continuing in the first half of 2021.
The growing popularity of Health Savings Accounts (HSAs) will likely help boost the income of its healthcare services segment in the near term, while investments in revenue-producing capabilities are likely to support growth.
Earnings Growth: UMB Financial recorded earnings growth of 15.2% over the past three to five years. The momentum is likely to continue in the near term, as reflected by the company’s projected earnings growth rate of 23% for 2021.
Moreover, UMB Financial has a decent earnings surprise history. The company's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 52.8%.
Steady Capital Deployments: UMB Financial undertakes sustainable capital deployment activities. The company has been raising dividends annually on a regular basis since 2002. The latest quarterly dividend hike of 15.6% was announced in July 2021. Also, the bank has a share-repurchase plan in place. In April 2021, the company approved a share-repurchase program of up to 2 million shares. The company's capital-deployment activities look sustainable, given its favorable debt/equity ratio compared with the broader industry and consistent earnings growth profile.
Superior Return on Equity (ROE): UMB Financial’s trailing 12-month ROE supports its growth potential. The company’s ROE of 13.90% compares favorably with ROE of 12.02% for the industry. This reflects that it is efficient in using shareholders’ funds compared with the overall market.
Strong Leverage: UMB Financial’s debt/equity ratio is 0.09, lower than the industry average of 0.26. The relatively strong financial health of the company is likely to help it perform better than its peers in a dynamic business environment.
Civista Bancshares, Inc.’s (CIVB - Free Report) earnings estimates for the ongoing year have moved marginally north to $2.42 in the past 30 days. It currently has a Zacks Rank of 2.
First Business Financial Services, Inc.’s (FBIZ - Free Report) 2021 earnings estimates have been unchanged at $3.89 over the past month. It currently has a Zacks Rank of 2.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
5 Reasons to Snap Up UMB Financial (UMBF) Stock Presently
It seems to be a wise idea to invest in UMB Financial Corporation (UMBF - Free Report) stock right now. Among others, the company’s robust fundamentals and solid earnings growth prospects are supporting factors.
The company is well-poised for revenue growth, driven by continued efforts to diversify non-interest income sources, and rising loans and deposits, which will support top-line growth in the quarters ahead.
Its current-year earnings estimates have been revised 3.6% upward over the past 60 days. The company currently carries a Zacks Rank #2 (Buy).
The stock has been performing well. So far this year, shares of UMB Financial have rallied 31.8%, outperforming the rise of 9.3% for the industry it belongs to.
Image Source: Zacks Investment Research
What Makes UMB Financial Investment Worthy
Fee-Income Strength: The company has been focused on diversifying operations to non-interest sources of revenues in order to reduce exposure to interest rates to balance the unprecedented risks related to the rate environment. For the five-year period ended in 2020, fee income witnessed a CAGR of 8.6%, with the increasing trend continuing in the first half of 2021.
The growing popularity of Health Savings Accounts (HSAs) will likely help boost the income of its healthcare services segment in the near term, while investments in revenue-producing capabilities are likely to support growth.
Earnings Growth: UMB Financial recorded earnings growth of 15.2% over the past three to five years. The momentum is likely to continue in the near term, as reflected by the company’s projected earnings growth rate of 23% for 2021.
Moreover, UMB Financial has a decent earnings surprise history. The company's earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 52.8%.
Steady Capital Deployments: UMB Financial undertakes sustainable capital deployment activities. The company has been raising dividends annually on a regular basis since 2002. The latest quarterly dividend hike of 15.6% was announced in July 2021. Also, the bank has a share-repurchase plan in place. In April 2021, the company approved a share-repurchase program of up to 2 million shares. The company's capital-deployment activities look sustainable, given its favorable debt/equity ratio compared with the broader industry and consistent earnings growth profile.
Superior Return on Equity (ROE): UMB Financial’s trailing 12-month ROE supports its growth potential. The company’s ROE of 13.90% compares favorably with ROE of 12.02% for the industry. This reflects that it is efficient in using shareholders’ funds compared with the overall market.
Strong Leverage: UMB Financial’s debt/equity ratio is 0.09, lower than the industry average of 0.26. The relatively strong financial health of the company is likely to help it perform better than its peers in a dynamic business environment.
Other Key Picks
Farmers National Banc Corp. (FMNB - Free Report) has witnessed a 13.11% upward estimate revision over the past 30 days. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Civista Bancshares, Inc.’s (CIVB - Free Report) earnings estimates for the ongoing year have moved marginally north to $2.42 in the past 30 days. It currently has a Zacks Rank of 2.
First Business Financial Services, Inc.’s (FBIZ - Free Report) 2021 earnings estimates have been unchanged at $3.89 over the past month. It currently has a Zacks Rank of 2.