Over the past few weeks, banking stocks have been witnessing a bullish trend reflecting improved earnings. Further, with Donald Trump elected President, the banks expect fewer regulations. Also, chances of a rate hike in December are quite high.

Hence, it’s the right time to add a few banking stocks to your portfolio. Today, we bring one such stock – South State Corporation (SSB Quick QuoteSSB - Free Report) – that continues to depict strong fundamentals and improving prospects.

In third-quarter 2016, South State’s earnings surpassed the Zacks Consensus Estimate. Moreover, it has witnessed an upward earnings estimate revision of nearly 1% for 2016 over the past 30 days, indicating analysts’ optimism about its growth prospects.

Further, this Zacks Rank #2 (Buy) stock has risen over 18% year to date and has an impressive earnings surprise history. You can see that in the chart below:

Why a Solid Pick?

Revenue Strength: South State Corporation’s net revenue has risen at a compounded annual growth rate (“CAGR”) of 21% over the last five years (2011–2015). The sturdy top-line increase was backed by strong loan and deposit growth. Moreover, the company’s projected sales growth (F1/F0) of 3.6% ensures continuation of the upward revenue trend.

Earnings per Share Growth: South State has witnessed approximately 7.8% rise in earnings per share over the last three–five years. Further, this earnings momentum will likely continue in the near term, as reflected by the company’s projected EPS growth (F1/F0) of 5.6%.

Superior ROE: South State’s Return on Equity (ROE) ratio is 9.83% compared with industry average of 7.88%. This indicates that the company reinvests more efficiently as compared with the industry.

Strong Leverage: The debt-to-equity ratio for South State Corporation is 0.05 compared with the industry average of 0.33. This indicates greater financial stability for the company and lesser risk for shareholders.

Valuation Looks Reasonable: South State has a Value Style Score of ‘B.’ The Value Style Score condenses all valuation metrics into one actionable score that helps investors steer clear of ‘value traps’ and identify stocks that are truly trading at a discount. Our research shows that stocks with Style Scores of ‘A’ or ‘B,’ when combined with Zacks Rank #1 (Strong Buy) or #2, offer the best upside potential.

Other Stocks Worth a Look

Other stocks worth considering in the financial sector include Farmers Capital Bank Corp. , Carolina Financial Corp. and Ameris Bancorp (ABCB Quick QuoteABCB - Free Report) .

Farmers Capital has witnessed an upward earnings estimate revision of 8.3% over the past 30 days. Also, its share price is up over 22% year to date. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carolina Financial also sports a Zacks Rank #1 and has witnessed an upward earnings estimate revision of 12.9% over the past 30 days. Moreover, its share price is up nearly 41% year to date.

Ameris Bancorp currently carries a Zacks Rank #2. It has witnessed an upward earnings estimate revision of 1.3% over the past 30 days and its share price has risen over 25% year to date.

Zacks’ Best Private Investment Ideas

In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?

Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>