At a time when banking stocks are showing resilience and confronting the macro issues upfront, we thought of bringing up a stock from the sector that reflects strong fundamentals, upbeat outlook and solid long-term growth opportunity.
Hancock Holding Company is a regional southeast bank, with a market capitalization of $2.38 billion. In the recently concluded quarter, the company’s earnings handily outpaced the Zacks Consensus Estimate.
Moreover, Hancock has an impressive earnings surprise history. You can see that in the chart below:
Why this Stock is an Attractive Pick?
Revenue Strength: Hancock’s revenue has risen at a compounded annual growth rate (“CAGR”) of 4.3% over the last five years (2011–2015). The growth is backed by strong loan growth with CAGR of 8.9% over the same time frame.
Additionally, the company’s projected sales growth (F1/F0) of 8.7% ensures continuation of the upward revenue trend.
Earnings per Share Growth: Hancock has witnessed earnings per share CAGR of 9.3% over the last five years (2011–2015). Further, this earnings momentum will likely continue in the near term as reflected by the company’s projected EPS growth (F1/F0) of 4.3%.
Also, the company’s long-term (3–5 years) estimated EPS growth rate of 8% promises rewards for investors in the long run.
Declining Expense Level: Hancock is focused on streamlining its operations in an effort to reduce expenses and improve efficiency. Operating expenses have declined at a 4-year CAGR of 3.1% (2012–2015). The company continues targeting further improvement in operating efficiency through additional review of office areas and branch network.
Strong Leverage: Hancock’s debt/equity ratio stands at 0.19 compared to the industry average of 0.33, indicating relatively lower debt burden. It indicates the financial stability of the company even in adverse economic conditions.
Solid Dividend Yield: Hancock’s capital-deployment activities remain impressive. The company has been paying a regular quarterly dividend of 24 cents per share. Based on yesterday’s closing price of $38.91 per share, the company’s current dividend yield is 3.17%. Additionally, the company has a share repurchase program in place.
Favorable Zacks Rank: Hancock currently sports a Zacks Rank #1 (Strong Buy). This is driven by upward revisions in the Zacks Consensus Estimate over the last 30 days, which rose 24.2% for 2016 and 5.5% for 2017.
Rising Share Price: Year to date, Hancock’s share price has witnessed an uptrend, surging approximately 20%.
Other Stocks to Consider
Other southeast banking stocks worth a look include CenterState Banks, Inc. , Southern National Bancorp of Virginia Inc. and State Bank Financial Corporation . All three stocks sport the same Zacks Rank as Hancock.
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Hancock (HBHC): 7 Reasons to Add Stock to Portfolio Now
At a time when banking stocks are showing resilience and confronting the macro issues upfront, we thought of bringing up a stock from the sector that reflects strong fundamentals, upbeat outlook and solid long-term growth opportunity.
Hancock Holding Company is a regional southeast bank, with a market capitalization of $2.38 billion. In the recently concluded quarter, the company’s earnings handily outpaced the Zacks Consensus Estimate.
Moreover, Hancock has an impressive earnings surprise history. You can see that in the chart below:
HANCOCK HLDG CO Price and EPS Surprise
HANCOCK HLDG CO Price and EPS Surprise | HANCOCK HLDG CO Quote
Why this Stock is an Attractive Pick?
Revenue Strength: Hancock’s revenue has risen at a compounded annual growth rate (“CAGR”) of 4.3% over the last five years (2011–2015). The growth is backed by strong loan growth with CAGR of 8.9% over the same time frame.
Additionally, the company’s projected sales growth (F1/F0) of 8.7% ensures continuation of the upward revenue trend.
Earnings per Share Growth: Hancock has witnessed earnings per share CAGR of 9.3% over the last five years (2011–2015). Further, this earnings momentum will likely continue in the near term as reflected by the company’s projected EPS growth (F1/F0) of 4.3%.
Also, the company’s long-term (3–5 years) estimated EPS growth rate of 8% promises rewards for investors in the long run.
Declining Expense Level: Hancock is focused on streamlining its operations in an effort to reduce expenses and improve efficiency. Operating expenses have declined at a 4-year CAGR of 3.1% (2012–2015). The company continues targeting further improvement in operating efficiency through additional review of office areas and branch network.
Strong Leverage: Hancock’s debt/equity ratio stands at 0.19 compared to the industry average of 0.33, indicating relatively lower debt burden. It indicates the financial stability of the company even in adverse economic conditions.
Solid Dividend Yield: Hancock’s capital-deployment activities remain impressive. The company has been paying a regular quarterly dividend of 24 cents per share. Based on yesterday’s closing price of $38.91 per share, the company’s current dividend yield is 3.17%. Additionally, the company has a share repurchase program in place.
Favorable Zacks Rank: Hancock currently sports a Zacks Rank #1 (Strong Buy). This is driven by upward revisions in the Zacks Consensus Estimate over the last 30 days, which rose 24.2% for 2016 and 5.5% for 2017.
Rising Share Price: Year to date, Hancock’s share price has witnessed an uptrend, surging approximately 20%.
HANCOCK HLDG CO Price
HANCOCK HLDG CO Price | HANCOCK HLDG CO Quote
Other Stocks to Consider
Other southeast banking stocks worth a look include CenterState Banks, Inc. , Southern National Bancorp of Virginia Inc. and State Bank Financial Corporation . All three stocks sport the same Zacks Rank as Hancock.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>