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3 Reasons Why Fulton Financial (FULT) is a Good Bet Now

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It is a wise idea to invest in banking stocks now given their rally since the presidential election. The promises made by President Donald Trump regarding fewer regulations and a better rate scenario actually boosted investors’ optimism.

The latest hike in interest rates by the Fed also instills confidence in the finance sector. This should particularly help banks to benefit from expanding margins.

Thus, we bring to you Fulton Financial Corporation (FULT - Free Report) stock, which could further move higher based on its fundamental strength.

Going by the estimate revisions trend, Fulton Financial’s earnings estimates for the current year remained stable over the last 60 days.

The stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Fulton Financial gained 44.5% in 2016, outpacing the 34.7% growth for the Zacks categorized Banks - Northeast industry. Moreover, Fulton Financial has a Momentum Score of ‘A’. Our research shows that stocks with a Style Score of ‘A’ or ‘B,’ when combined with a Zacks Rank #1 or 2, offer the best upside potential.



Key Driving Factors

Earnings per Share (EPS) Growth: In the last 3–5 years, Fulton Financial witnessed EPS growth of 8.2%. The company has a decent earnings surprise history, having delivered positive surprises in three of the trailing four quarters with an average beat of 3.4%.  

Further, the company’s earnings are projected to grow 7.7% and 10.8% in 2017 and 2018, respectively.

Revenue Growth: Fulton Financial’s revenues have grown at a 3-year CAGR (2014-2016) of 1.9%. Moreover, revenues are anticipated to grow at 8.4% in 2017 compared with nil growth for the industry.

Further, sales are expected to increase at the rate of 6.6% in 2018.

Strong Leverage: Fulton Financial has a debt/equity ratio of 0.44, lower than the industry average of 0.58. This implies that the company uses lesser debt to finance its operations and will be financially stable even in adverse economic conditions.

Other Stocks Worth a Look

Some other stocks worth considering in the finance space are Evercore Partners Inc. (EVR - Free Report) , Bank of America Corporation (BAC - Free Report) and Comerica Incorporated (CMA - Free Report) .

Evercore Partners witnessed an upward earnings estimate revision of 6% for the current year, in the last 60 days. Its share price increased 54.5% in the last six months. Evercore Partners currently carries a Zacks Rank #1.

Bank of America carries a Zacks Rank #2. For the current year, in the last 60 days, its Zacks Consensus Estimate revised 1.2% upward. The company’s share price increased 53% in the last six months.

Comerica also carries a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 1.7% for the current year, in the last 60 days. Its share price increased 46.8% in the last six months.

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