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M&T Bank (MTB) Reflects Organic Growth: Should You Buy?
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On Jun 2, we issued an updated research report on M&T Bank Corporation (MTB - Free Report) . The Buffalo, NY-based banking giant’s future prospects look encouraging as it continues to display strength in several areas.
M&T Bank has managed to continue its growth in net interest income (NII) despite the low interest rate environment and a competitive business scenario. Over the last six years (ended Dec 2016), the company’s NII witnessed a compound annual growth rate (CAGR) of nearly 7.7%, with the trend continuing in first-quarter 2017 as well.
M&T Bank’s solid capital position not only allows the company to enhance shareholders’ value through share buybacks and dividend increases, but also aids in undertaking expansion moves. The company has grown meaningfully over the years through several mergers and acquisitions. The completion of the merger with Hudson City in Nov 2015 expanded the company’s retail branch network in eastern U.S., with access to 135 Hudson branches, situated primarily in New Jersey. Further, product and balance-sheet diversification, stemming from the acquisition, will likely support the company’s top line.
M&T Bank is focused on acquiring the industry's best deposit franchise. Deposits recorded a 5-year CAGR of 9.8% (2012–2016), aided by rising savings and non-interest-bearing deposits. Further, the company witnessed decent loan growth over the past few years, recording a 3-year CAGR of 12.5% (2013–2016). The uptrend continued in first-quarter 2017 as well.
Shares of M&T Bank have gained 6.9% over the past six months, outperforming 0.4% growth recorded by the Zacks categorized Regional Banks-Major industry.
Over the past 60 days, the Zacks Consensus Estimate increased 5.7% and 3.4% to $9.22 and $10.06 for 2017 and 2018, respectively.
Hence, M&T Bank currently flaunts a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Northern Trust Corporation (NTRS - 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 3.6%. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 3.8% over the past six months. It currently has a Zacks Rank #2.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 6.8% over the last six months. It presently holds a Zacks Rank #2.
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M&T Bank (MTB) Reflects Organic Growth: Should You Buy?
On Jun 2, we issued an updated research report on M&T Bank Corporation (MTB - Free Report) . The Buffalo, NY-based banking giant’s future prospects look encouraging as it continues to display strength in several areas.
M&T Bank has managed to continue its growth in net interest income (NII) despite the low interest rate environment and a competitive business scenario. Over the last six years (ended Dec 2016), the company’s NII witnessed a compound annual growth rate (CAGR) of nearly 7.7%, with the trend continuing in first-quarter 2017 as well.
M&T Bank’s solid capital position not only allows the company to enhance shareholders’ value through share buybacks and dividend increases, but also aids in undertaking expansion moves. The company has grown meaningfully over the years through several mergers and acquisitions. The completion of the merger with Hudson City in Nov 2015 expanded the company’s retail branch network in eastern U.S., with access to 135 Hudson branches, situated primarily in New Jersey. Further, product and balance-sheet diversification, stemming from the acquisition, will likely support the company’s top line.
M&T Bank is focused on acquiring the industry's best deposit franchise. Deposits recorded a 5-year CAGR of 9.8% (2012–2016), aided by rising savings and non-interest-bearing deposits. Further, the company witnessed decent loan growth over the past few years, recording a 3-year CAGR of 12.5% (2013–2016). The uptrend continued in first-quarter 2017 as well.
Shares of M&T Bank have gained 6.9% over the past six months, outperforming 0.4% growth recorded by the Zacks categorized Regional Banks-Major industry.
Over the past 60 days, the Zacks Consensus Estimate increased 5.7% and 3.4% to $9.22 and $10.06 for 2017 and 2018, respectively.
Hence, M&T Bank currently flaunts a Zacks Rank #1 (Strong Buy).
Other Stocks to Consider
Northern Trust Corporation (NTRS - 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 3.6%. It carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Comerica Incorporated (CMA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock jumped over 3.8% over the past six months. It currently has a Zacks Rank #2.
The PNC Financial Services Group, Inc. (PNC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 6.8% over the last six months. It presently holds a Zacks Rank #2.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana. Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look. See the pot trades we're targeting>>