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Why People's United Should Be Part of Your Portfolio Now

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On Mar 27, we issued an updated research report on People’s United Financial, Inc. . The company has benefitted from its inorganic growth strategy over time. Also, its organic growth has been impressive.

However, the consistent pressure on margins and rising expenses for the last few years have affected the company’s financials. Thus, its shares have returned 14.3% over the last six months, underperforming the 19.1% gain for the Zacks categorized Financial - Savings and Loan industry.

In 2016, the company was actively involved in acquisitions. In June, it announced a deal to acquire Suffolk Bancorp, in order to enter the New York region. Further, in November, People’s United acquired Gerstein Fisher, to help boost its fee income business. All these inorganic strategies are expected to improve its financials, going forward.

Moreover, the company’s organic growth has seen a compound annual growth rate (CAGR) of 8.2% in the last five years. Also, management expects it to grow in the range of 4–7% in 2017.

People’s United has also displayed capital strength through its steady capital deployment activities. In Apr 2016, it hiked its common stock dividend by 1.2%.

Currently, People’s United holds a Zacks Rank #2 (Buy).

Some other favorably ranked financial stocks include 1st Constitution Bancorp , ServisFirst Bancshares, Inc. (SFBS - Free Report) and DBS Group Holdings Ltd. (DBSDY - Free Report) . All three stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

1st Constitution has seen share price growth of 44.3%, over last one year. Also, its earnings estimates have been revised 4.5% upward over the last 60 days.

ServisFirst’s earnings estimates have witnessed a 5.8% upward revision over the last 60 days. However, its shares have gained 64.7% in the last one year period.

DBS Group has witnessed a 4.0% upward earnings estimate revision over the last 30 days. Its shares have increased 18.4%, over the last one year.

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