We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Synovus Rides on Inorganic Growth Strategy: Time to Buy?
Read MoreHide Full Article
On Jun 20, we issued an updated research report on Synovus Financial Corp (SNV - Free Report) . The company continues to perform well on the back of its strong inorganic growth strategies. Also, its robust balance sheet position keeps us encouraged. However, escalating expenses is a key headwind.
The company’s inorganic growth strategies remain encouraging. In Oct 2016, it acquired Entaire Global Companies, Inc., which is expected to be immediately accretive to its financials. Also, it recently agreed to buy Cabela’s banking operations.
Also, Synovus displayed robust organic growth over the last few years. Loans have witnessed a compound annual growth rate (CAGR) of 6% over the last four years (ended 2016). Net interest income (NII) has seen a CAGR of 3.5% in the same time period. Further, management expects NII to grow in the range of 10–12% in 2017.
Moreover, Synovus remains committed to enhancing shareholders’ value through steady capital deployment activities. The company hiked its common stock dividend by 25% in Mar 2017. Further, management plans to buy back about $200 million shares in 2017.
Nevertheless, the company witnessed mounting expenses in the previous year due to several strategic investments. The company expects expenses to increase 2–4% in the current year.
Synovus’ shares have gained 44.4% over the last one year, outperforming the Zacks categorized Banks - Southeast industry’s rally of 4%.
Some other stocks worth considering in the financial space include Comerica Incorporated (CMA - Free Report) , M&T Bank Corporation (MTB - Free Report) and Lakeland Bancorp, Inc. (LBAI - Free Report) . All these stocks hold a Zacks Rank #2.
Comerica has witnessed an upward earnings estimate revision of 8.8% for the current year in the past 60 days. Also, its shares have rallied 74.7% over the last one year.
M&T Bank’s earnings estimates have been revised upward by 2.4% for the current year, in the past 60 days. Also, over the last one year, its shares have gained 40.7%.
Lakeland has witnessed an upward earnings estimate revision of 2.8% for the current year, in the past 60 days. Also, its shares have jumped 71.2%, over the last one year.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Image: Bigstock
Synovus Rides on Inorganic Growth Strategy: Time to Buy?
On Jun 20, we issued an updated research report on Synovus Financial Corp (SNV - Free Report) . The company continues to perform well on the back of its strong inorganic growth strategies. Also, its robust balance sheet position keeps us encouraged. However, escalating expenses is a key headwind.
The company’s inorganic growth strategies remain encouraging. In Oct 2016, it acquired Entaire Global Companies, Inc., which is expected to be immediately accretive to its financials. Also, it recently agreed to buy Cabela’s banking operations.
Also, Synovus displayed robust organic growth over the last few years. Loans have witnessed a compound annual growth rate (CAGR) of 6% over the last four years (ended 2016). Net interest income (NII) has seen a CAGR of 3.5% in the same time period. Further, management expects NII to grow in the range of 10–12% in 2017.
Moreover, Synovus remains committed to enhancing shareholders’ value through steady capital deployment activities. The company hiked its common stock dividend by 25% in Mar 2017. Further, management plans to buy back about $200 million shares in 2017.
Nevertheless, the company witnessed mounting expenses in the previous year due to several strategic investments. The company expects expenses to increase 2–4% in the current year.
Synovus’ shares have gained 44.4% over the last one year, outperforming the Zacks categorized Banks - Southeast industry’s rally of 4%.
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.
Some other stocks worth considering in the financial space include Comerica Incorporated (CMA - Free Report) , M&T Bank Corporation (MTB - Free Report) and Lakeland Bancorp, Inc. (LBAI - Free Report) . All these stocks hold a Zacks Rank #2.
Comerica has witnessed an upward earnings estimate revision of 8.8% for the current year in the past 60 days. Also, its shares have rallied 74.7% over the last one year.
M&T Bank’s earnings estimates have been revised upward by 2.4% for the current year, in the past 60 days. Also, over the last one year, its shares have gained 40.7%.
Lakeland has witnessed an upward earnings estimate revision of 2.8% for the current year, in the past 60 days. Also, its shares have jumped 71.2%, over the last one year.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>