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Why Lakeland Financial (LKFN) is an Attractive Pick Now
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During the last earnings season, the Finance sector was one of the best performers. Despite inflation-related issues and increasing chances of political uncertainty, we can add some banking stocks to our portfolio based on their strong fundamentals and solid long-term growth opportunities.
Lakeland Financial Corporation (LKFN - Free Report) is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 moved up 5.7% and 3.9%, respectively.
Further, this Zacks Rank #2 (Buy) stock has gained around 24.5% over the last year, outperforming 16.6% rally recorded by the industry it belongs to.
Notably, Lakeland Financial has a number of other aspects that make it an attractive investment option.
Why Lakeland Financial is a Must Buy
Revenue Strength: Lakeland Financial’s revenues saw a compound annual growth rate of 7.6% over the last four years (2013–2016). Further, the top line is expected to grow 13.84% in 2017, higher than the industry average of 2.6%.
Earnings Growth: Lakeland Financial witnessed earnings growth of 9.69% in the last three to five years. This earnings momentum is likely to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate (F1/F0) of 15.45%.
Further, the company’s long-term (three to five years) estimated EPS growth rate of 10% promises rewards for investors in the long run. Also, it recorded an average positive earnings surprise of 5.62% over the trailing four quarters.
Stock is Undervalued: Lakeland Financial has P/E and P/B ratios of 18.38 and 2.42, respectively, compared with the S&P 500 average of 18.72x and 3.04x. Based on these ratios, the stock seems undervalued.
Strong Leverage: Lakeland Financial’s debt/equity ratio is valued at 0.07 compared with the industry average of 0.46, indicating relative lower debt burden. It highlights the financial stability of the company despite an unstable economic environment.
Superior Return on Equity (ROE): Lakeland Financial’s ROE of 13.06% compared with the industry average 9.44%, highlights the company’s commendable position over its peers.
Other Stocks to Consider
LPL Financial Holdings Inc. (LPLA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the past year, the company’s share price has been up more than 62%. It flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Raymond James Financial, Inc. (RJF - Free Report) has been witnessing upward estimate revisions for the last 60 days. Further, the stock has surged nearly 38.9% over the past year. It currently carries a Zacks Rank #2.
E*TRADE Financial Corporation has been recording upward estimate revisions over the last 60 days. In addition, the company’s shares have risen nearly 58.6% over the past year. It currently holds a Zacks Rank #2.
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.
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Why Lakeland Financial (LKFN) is an Attractive Pick Now
During the last earnings season, the Finance sector was one of the best performers. Despite inflation-related issues and increasing chances of political uncertainty, we can add some banking stocks to our portfolio based on their strong fundamentals and solid long-term growth opportunities.
Lakeland Financial Corporation (LKFN - Free Report) is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 30 days, the Zacks Consensus Estimate for 2017 and 2018 moved up 5.7% and 3.9%, respectively.
Further, this Zacks Rank #2 (Buy) stock has gained around 24.5% over the last year, outperforming 16.6% rally recorded by the industry it belongs to.
Notably, Lakeland Financial has a number of other aspects that make it an attractive investment option.
Why Lakeland Financial is a Must Buy
Revenue Strength: Lakeland Financial’s revenues saw a compound annual growth rate of 7.6% over the last four years (2013–2016). Further, the top line is expected to grow 13.84% in 2017, higher than the industry average of 2.6%.
Earnings Growth: Lakeland Financial witnessed earnings growth of 9.69% in the last three to five years. This earnings momentum is likely to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate (F1/F0) of 15.45%.
Further, the company’s long-term (three to five years) estimated EPS growth rate of 10% promises rewards for investors in the long run. Also, it recorded an average positive earnings surprise of 5.62% over the trailing four quarters.
Stock is Undervalued: Lakeland Financial has P/E and P/B ratios of 18.38 and 2.42, respectively, compared with the S&P 500 average of 18.72x and 3.04x. Based on these ratios, the stock seems undervalued.
Strong Leverage: Lakeland Financial’s debt/equity ratio is valued at 0.07 compared with the industry average of 0.46, indicating relative lower debt burden. It highlights the financial stability of the company despite an unstable economic environment.
Superior Return on Equity (ROE): Lakeland Financial’s ROE of 13.06% compared with the industry average 9.44%, highlights the company’s commendable position over its peers.
Other Stocks to Consider
LPL Financial Holdings Inc. (LPLA - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the past year, the company’s share price has been up more than 62%. It flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Raymond James Financial, Inc. (RJF - Free Report) has been witnessing upward estimate revisions for the last 60 days. Further, the stock has surged nearly 38.9% over the past year. It currently carries a Zacks Rank #2.
E*TRADE Financial Corporation has been recording upward estimate revisions over the last 60 days. In addition, the company’s shares have risen nearly 58.6% over the past year. It currently holds a Zacks Rank #2.
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 >>