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Here's Why You Should Invest in BankUnited Stock Right Now

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Banking stocks have been witnessing a bullish trend for quite some time now. The Fed rate hike and continued improvement in the domestic economy along with promises made by the Trump-regime (lower tax rates, lesser regulations and increased infrastructure spending), are the primary reasons for investors’ optimism.

Therefore, it is the right time to add a few banking stocks to your portfolio. Today, we bring one such stock – BankUnited, Inc. (BKU - Free Report) – that continues to depict strong fundamentals and improving prospects.

Further, this Zacks Rank #2 (Buy) stock has risen over 26.6% over the last three months compared with 19.1% gain for the Zacks categorized Major Banks sector.



Why a Solid Pick?

Revenue Strength: BankUnited’s net revenue has risen at a compounded annual growth rate (“CAGR”) of 8.1% over the last four years (2012–2015). The sturdy top-line increase was backed by strong loan and deposit growth. The company’s projected sales growth of 16.3% for 2016 and 6.6% for 2017 ensures continuation of the upward revenue trend.

Earnings Growth: BankUnited has witnessed 8.3% growth in earnings per share (EPS) over the last three to five years. Notably, earnings are estimated to grow at the rate of 8.2% for 2016 and 15.3% for 2017.

In addition, the company’s long-term (3–5 years) estimated EPS growth rate of 8.9% (compared with the industry growth rate of 7.2%) promises rewards for investors, over the long run.

Superior ROE: Community Bank System’s Return on Equity (ROE) ratio is 8.77% compared with the industry average of 8.65%. This indicates that the company reinvests more efficiently compared to the industry.

Other Stocks Worth Considering

Other stocks worth a look in the financial sector include Farmers Capital Bank Corporation , Carolina Financial Corporation and Commerce Bancshares, Inc. (CBSH - Free Report) .

Farmers Capital is projected to record 21% year-over year-increase in earnings for 2016. Also, its share price is up 45.8%, over the last three months. It currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Carolina Financial also flaunts a Zacks Rank #1 and is estimated to witness 2.6% rise in 2016 earnings. Moreover, over the last three months, its share price is up over 41.2%.

Commerce Bancshares carries a Zacks Rank #2 and is likely to record 8.5% year-over-year increase in 2016 earnings. Further, its share price has risen 25.1%, over the last three months.

Zacks' Top 10 Stocks for 2017

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?

Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>


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Commerce Bancshares, Inc. (CBSH) - free report >>

BankUnited, Inc. (BKU) - free report >>