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Synovus (SNV) Displays Robust Prospects: Should You Buy?
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Synovus Financial Corp. (SNV - Free Report) can be a solid bet now on the back of its organic and inorganic growth strategies which have placed it well for the future. Moreover, Synovus’ focus on balance-sheet growth is also encouraging.
Further, the impending interest rate hike is anticipated to bring stability to the top line. This, in turn, is likely to attract long-term investors. Strict regulations and technology costs to meet customers’ needs have been escalating expenses for Synovus. However, sharper focus on reducing expenses by reorganizing business and improving revenues will help in boosting the bottom line.
Therefore, at present, it’s a good idea to add stocks with robust fundamentals and long-term growth opportunities to your portfolio.
With $30.1 billion in assets as of Dec 31, 2016, Synovus’ strengths include organic growth strategy, balance-sheet growth and steady capital deployment activities.
6 Reasons Why Synovus is a Must Buy
Revenue Growth: Organic growth remains a key strength for Synovus, with its total revenue growing at a Compound Annual Growth Rate (CAGR) of 3.1% over the last four years (2013–2016). Also, loans have increased at a CAGR of 6% for the last four years (2013–2016).
Further, the company’s projected sales growth (F1/F0) of 7.31% (compared with 1.94% growth for the industry) ensures continuation of the uptrend in top line.
Earnings Strength: Synovus has witnessed historical (3–5 years) earnings per share growth of 18.14% compared with 10.48% for the industry. In addition, the company’s estimated long-term EPS growth rate of 8.0% promises rewards for investors. Synovus also recorded an average positive earnings surprise of 1.97%, over the trailing four quarters.
Steady Capital Deployment: Synovus remains committed toward creating value for its shareholders through dividend hikes, share buybacks and acquisitions, thereby reflecting strong balance-sheet position. In Oct 2016, the company acquired Entaire Global Companies, Inc. Further, the board of directors has authorized a share repurchase program of up to $200 million to be completed in 2017. Moreover, a 25% hike in quarterly dividend has been approved by the board, which will be paid in April.
Favorable Zacks Rank: Synovus currently sports a Zacks Rank #1 (Strong Buy). This has been driven by upward estimate revisions for the last 60 days. For 2017, the Zacks Consensus Estimate moved up around 4.2% to $2.23 and 7.3% to $2.51 for 2018.
Stock is Undervalued: Synovus has a P/B ratio of 1.87x, compared to the S&P 500 average of 3.17x. Based on this ratio, the stock seems undervalued.
Share Price Movement: Synovus’ shares gained 28.7% over the last six months, compared with 31.9% growth in the Zacks categorized Southeast Banks industry.
Stocks to Consider
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged over 40% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
U.S. Bancorp (USB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 25.4% over the last six months. It presently holds a Zacks Rank #2.
Bank of America Corporation (BAC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 59%. It carries a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>
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Synovus (SNV) Displays Robust Prospects: Should You Buy?
Synovus Financial Corp. (SNV - Free Report) can be a solid bet now on the back of its organic and inorganic growth strategies which have placed it well for the future. Moreover, Synovus’ focus on balance-sheet growth is also encouraging.
Further, the impending interest rate hike is anticipated to bring stability to the top line. This, in turn, is likely to attract long-term investors. Strict regulations and technology costs to meet customers’ needs have been escalating expenses for Synovus. However, sharper focus on reducing expenses by reorganizing business and improving revenues will help in boosting the bottom line.
Therefore, at present, it’s a good idea to add stocks with robust fundamentals and long-term growth opportunities to your portfolio.
With $30.1 billion in assets as of Dec 31, 2016, Synovus’ strengths include organic growth strategy, balance-sheet growth and steady capital deployment activities.
6 Reasons Why Synovus is a Must Buy
Revenue Growth: Organic growth remains a key strength for Synovus, with its total revenue growing at a Compound Annual Growth Rate (CAGR) of 3.1% over the last four years (2013–2016). Also, loans have increased at a CAGR of 6% for the last four years (2013–2016).
Further, the company’s projected sales growth (F1/F0) of 7.31% (compared with 1.94% growth for the industry) ensures continuation of the uptrend in top line.
Earnings Strength: Synovus has witnessed historical (3–5 years) earnings per share growth of 18.14% compared with 10.48% for the industry. In addition, the company’s estimated long-term EPS growth rate of 8.0% promises rewards for investors. Synovus also recorded an average positive earnings surprise of 1.97%, over the trailing four quarters.
Steady Capital Deployment: Synovus remains committed toward creating value for its shareholders through dividend hikes, share buybacks and acquisitions, thereby reflecting strong balance-sheet position. In Oct 2016, the company acquired Entaire Global Companies, Inc. Further, the board of directors has authorized a share repurchase program of up to $200 million to be completed in 2017. Moreover, a 25% hike in quarterly dividend has been approved by the board, which will be paid in April.
Favorable Zacks Rank: Synovus currently sports a Zacks Rank #1 (Strong Buy). This has been driven by upward estimate revisions for the last 60 days. For 2017, the Zacks Consensus Estimate moved up around 4.2% to $2.23 and 7.3% to $2.51 for 2018.
Stock is Undervalued: Synovus has a P/B ratio of 1.87x, compared to the S&P 500 average of 3.17x. Based on this ratio, the stock seems undervalued.
Share Price Movement: Synovus’ shares gained 28.7% over the last six months, compared with 31.9% growth in the Zacks categorized Southeast Banks industry.
Stocks to Consider
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged over 40% over the past six months. It currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
U.S. Bancorp (USB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 25.4% over the last six months. It presently holds a Zacks Rank #2.
Bank of America Corporation (BAC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 59%. It carries a Zacks Rank #2.
More Stock News: 8 Companies Verge on Apple-Like Run
Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.
A bonus Zacks Special Report names this breakthrough and the 8 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains. Click to see them right now >>