CenterState Banks, Inc. can be a solid bet now, backed by its organic and inorganic growth strategies that have placed it well for the future. Also, improving earnings performance and a strong capital and liquidity profile will support its profitability.
Further, analysts seem to be optimistic about the company’s prospects as the stock is witnessing upward estimate revisions. Over the past 30 days, the Zacks Consensus Estimate for the current year has risen 4.4% to $1.43. Backed by these upward estimate revisions, the company currently carries a Zacks Rank #2 (Buy).
Also, its shares have rallied 38.5% over the past year, outperforming the industry’s gain of 23.8%.
Why the Stock is a Solid Pick?
Earnings Strength: CenterState Banks has recorded an earnings growth rate of 13% over the last three to five years. Continuing with the earnings momentum, the earnings growth rate for the current year is expected to be 40.2% compared with the industry average of 10.7%.
Revenue Growth: Organic growth remains strong at CenterState Banks. Revenues witnessed a compound annual growth rate of 13.2% over the last five years (2012-2016). Further, the top line is expected to jump 26.2% in 2017 compared with industry average of 2.2%.
As the company closes its acquisitions of HCBF Holding Company, Inc. and Sunshine Bancorp, Inc. early next year, top-line growth is projected to improve further.
Superior Return on Equity: CenterState Banks has a return on equity of 9.36% compared with the industry average of 8.03%. This indicates that the company reinvests more efficiently compared to its peers.
Strong Leverage: CenterState Banks has debt/equity ratio of 0.03 compared with the industry’s 0.31. This reflects relatively strong financial health of the company, which will help it perform better than its peers under a dynamic business environment.
Other Stocks to Consider
Some other stocks in the same space worth a look are Carolina Financial Corporation , Green Bancorp, Inc. and State Bank Financial Corporation . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carolina Financial’s earnings estimates were revised 4.3% upward for 2017, in the past 30 days. Also, its share price has jumped 56.4% over the past year.
Earnings estimates for 2017 of Green Bancorp were revised 18.1% upward, over the last 30 days. Further in the past year, its shares have jumped 117.5%.
State Bank Financial witnessed a 4.9% upward earnings estimates revision for the current year, in the past 30 days. Moreover, in the past year, its shares have gained 16.3%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>
Image: Bigstock
Here's Why You Should Bet on CenterState Banks (CSFL) Now
CenterState Banks, Inc. can be a solid bet now, backed by its organic and inorganic growth strategies that have placed it well for the future. Also, improving earnings performance and a strong capital and liquidity profile will support its profitability.
Further, analysts seem to be optimistic about the company’s prospects as the stock is witnessing upward estimate revisions. Over the past 30 days, the Zacks Consensus Estimate for the current year has risen 4.4% to $1.43. Backed by these upward estimate revisions, the company currently carries a Zacks Rank #2 (Buy).
Also, its shares have rallied 38.5% over the past year, outperforming the industry’s gain of 23.8%.
Why the Stock is a Solid Pick?
Earnings Strength: CenterState Banks has recorded an earnings growth rate of 13% over the last three to five years. Continuing with the earnings momentum, the earnings growth rate for the current year is expected to be 40.2% compared with the industry average of 10.7%.
Revenue Growth: Organic growth remains strong at CenterState Banks. Revenues witnessed a compound annual growth rate of 13.2% over the last five years (2012-2016). Further, the top line is expected to jump 26.2% in 2017 compared with industry average of 2.2%.
As the company closes its acquisitions of HCBF Holding Company, Inc. and Sunshine Bancorp, Inc. early next year, top-line growth is projected to improve further.
Superior Return on Equity: CenterState Banks has a return on equity of 9.36% compared with the industry average of 8.03%. This indicates that the company reinvests more efficiently compared to its peers.
Strong Leverage: CenterState Banks has debt/equity ratio of 0.03 compared with the industry’s 0.31. This reflects relatively strong financial health of the company, which will help it perform better than its peers under a dynamic business environment.
Other Stocks to Consider
Some other stocks in the same space worth a look are Carolina Financial Corporation , Green Bancorp, Inc. and State Bank Financial Corporation . All the stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Carolina Financial’s earnings estimates were revised 4.3% upward for 2017, in the past 30 days. Also, its share price has jumped 56.4% over the past year.
Earnings estimates for 2017 of Green Bancorp were revised 18.1% upward, over the last 30 days. Further in the past year, its shares have jumped 117.5%.
State Bank Financial witnessed a 4.9% upward earnings estimates revision for the current year, in the past 30 days. Moreover, in the past year, its shares have gained 16.3%.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020.
Click here for the 6 trades >>