Back to top

Image: Bigstock

5 Reasons Why NBT Bancorp (NBTB) is a Solid Pick Right Now

Read MoreHide Full Article

NBT Bancorp Inc. (NBTB - Free Report) is a solid bet now, backed by its organic growth strategies which have placed it well for future. Also, a strong capital and liquidity profile will support the company’s profitability.

Further, the recent interest rate hikes are likely to bring further stability to top-line generation, in turn, creating buying opportunity for long-term horses. Though escalating costs might lead to operational inefficiency, sharper focus on organic growth will likely make the growth path smoother for the company.

The Zacks Consensus Estimate for 2017 remained unchanged at $1.96 in a month’s time. The company currently carries a Zacks Rank #2 (Buy). Also, its shares have gained 3.8% in a year’s time compared with the industry’s gain of 18%.



Notably, NBT Bancorp has a number of other aspects that make it an attractive investment option.

Why the Stock is an Attractive Choice?

Earnings Strength: NBT Bancorp recorded earnings growth rate of 2.4% over the last three to five years. Retaining the earnings momentum, the earnings growth rate for the current year is anticipated to be 8.6%. Good news is that the company recorded an average positive earnings surprise of 0.01% over the trailing four quarters.

Revenue Growth: Organic growth remains solid at NBT Bancorp. Revenues witnessed a compound annual growth rate of 5.4% over the last five years (2012-2016), with some volatility. Further, the top line is projected to increase 6.8% in 2017 and 5.7% in 2018.

Superior Return on Equity: NBT Bancorp has a return on equity of 8.81% compared with the industry average of 8.57%. This indicates that the company reinvests more efficiently compared to its peers.

Strong Leverage: NBT Bancorp has a debt/equity ratio of 0.20 compared with the industry’s 0.55. This reflects relatively robust financial health of the company, which will help it perform better than its peers under a dynamic business environment.

Stock is Undervalued: NBT Bancorp has P/E and P/B ratios of 16.99 and 1.54 compared to the S&P 500 average of 18.86 and 3.07, respectively. Based on these ratios, the stock seems undervalued.

Other Stocks to Consider

Some other top-ranked stocks in the same space are FB Financial Corporation (FBK - Free Report) , LPL Financial Holdings Inc. (LPLA - Free Report) and Salisbury Bancorp, Inc. . All the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

FB Financial’s earnings estimates were revised 3.2% upward for 2017, in the past 60 days. Also, its share price has surged 67.1% in a year’s time.

LPL Financial’s earnings estimates for 2017 have been revised 4.1% upward, over the last 60 days. Further, in a year’s time, the company’s shares have jumped 55.2%.

Salisbury Bancorp witnessed a 2.4% upward earnings estimates revision for the current year, in a month’s time. Moreover, in the past year, its shares have gained 44.2%.

Zacks' 10-Minute Stock-Picking Secret

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.

Learn the secret >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


LPL Financial Holdings Inc. (LPLA) - free report >>

NBT Bancorp Inc. (NBTB) - free report >>

FB Financial Corporation (FBK) - free report >>

Published in