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The Zacks Analyst Blog Highlights: CommerceWest Bank, DNB Financial and FVCBankcorp
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For Immediate Release
Chicago, IL – September 18, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CommerceWest Bank (OTCBB:(CWBK - Free Report) – Free Report), DNB Financial Corporation (Nasdaq: – Free Report) and FVCBankcorp, Inc. (OTCMKTS:(FVCB - Free Report) – Free Report).
The U.S banking industry, which has witnessed a solid rally since the beginning of the year with investors’ optimism over President Trump’s policy reforms and rising interest rates, seems to have lost momentum recently.
Lack of any tangible progress on the promises made by Trump and uncertainty related to the pace of interest rate hikes in the future are primarily responsible for the recent dislike of investors for this space.
Further, the expectation of the industry witnessing declining mortgage banking and trading revenues in the upcoming quarter has sidelined hopes of top-line recovery.
Finally, lower-than-expected easing in banks’ margin pressure despite the three rate hikes since last December is discouraging investors to bet on the industry. Though a rising rate environment is favorable for the banking system, lenders have not been able to generate revenues due to uneven movements in short and long-term rates.
Which Segment Suffered Most?
Given the challenging environment, Zacks medium level bank industry, Banks & Thrifts, has declined 6.8% year to date, significantly underperforming the S&P 500’s rally of 11.6%.
Despite this price decline, the banks in this group seem overvalued when compared with the broader Zacks Finance Sector. Banks & Thrifts have a price-to-book ratio of 1.82 compared with 1.54 for the broader market.
3 Stocks That Might Not Rally Further
We have selected stocks that have gained more than 20% so far this year, but have been witnessing a downward trend in earnings estimate revisions and carry a Zacks Rank #4 (Sell) or #5 (Strong Sell).
CommerceWest Bank (OTCBB:(CWBK - Free Report) – Free Report):The stock has gained nearly 26% year to date. The Irvine, CA-based company has a Zacks Rank of 4. Further, its Zacks Consensus Estimate for the current-year earnings has been revised 5.5% downward over the last 60 days.
DNB Financial Corporation(Nasdaq: – Free Report): Shares of this bank have gained 20.1% year to date. However, its Zacks Consensus Estimate for the current-year earnings has been revised 10.41% downward over the last 60 days. The Downingtown, PA-based bank carries a Zacks Rank of 5.
FVCBankcorp, Inc.(OTCMKTS:(FVCB - Free Report) – Free Report): Shares of this bank have gained 25% so far this year. Its Zacks Consensus Estimate for the current-year earnings has been revised 1.9% downward over the last 60 days. This Fairfax, VA-based lender carries a Zacks Rank of 4.
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Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: CommerceWest Bank, DNB Financial and FVCBankcorp
For Immediate Release
Chicago, IL – September 18, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CommerceWest Bank (OTCBB:(CWBK - Free Report) – Free Report), DNB Financial Corporation (Nasdaq: – Free Report) and FVCBankcorp, Inc. (OTCMKTS:(FVCB - Free Report) – Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday’s Analyst Blog:
Here’s Why These 3 Bank Stocks May Stop Rallying
The U.S banking industry, which has witnessed a solid rally since the beginning of the year with investors’ optimism over President Trump’s policy reforms and rising interest rates, seems to have lost momentum recently.
Lack of any tangible progress on the promises made by Trump and uncertainty related to the pace of interest rate hikes in the future are primarily responsible for the recent dislike of investors for this space.
Further, the expectation of the industry witnessing declining mortgage banking and trading revenues in the upcoming quarter has sidelined hopes of top-line recovery.
Finally, lower-than-expected easing in banks’ margin pressure despite the three rate hikes since last December is discouraging investors to bet on the industry. Though a rising rate environment is favorable for the banking system, lenders have not been able to generate revenues due to uneven movements in short and long-term rates.
Which Segment Suffered Most?
Given the challenging environment, Zacks medium level bank industry, Banks & Thrifts, has declined 6.8% year to date, significantly underperforming the S&P 500’s rally of 11.6%.
Despite this price decline, the banks in this group seem overvalued when compared with the broader Zacks Finance Sector. Banks & Thrifts have a price-to-book ratio of 1.82 compared with 1.54 for the broader market.
3 Stocks That Might Not Rally Further
We have selected stocks that have gained more than 20% so far this year, but have been witnessing a downward trend in earnings estimate revisions and carry a Zacks Rank #4 (Sell) or #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
CommerceWest Bank (OTCBB:(CWBK - Free Report) – Free Report):The stock has gained nearly 26% year to date. The Irvine, CA-based company has a Zacks Rank of 4. Further, its Zacks Consensus Estimate for the current-year earnings has been revised 5.5% downward over the last 60 days.
DNB Financial Corporation(Nasdaq: – Free Report): Shares of this bank have gained 20.1% year to date. However, its Zacks Consensus Estimate for the current-year earnings has been revised 10.41% downward over the last 60 days. The Downingtown, PA-based bank carries a Zacks Rank of 5.
FVCBankcorp, Inc.(OTCMKTS:(FVCB - Free Report) – Free Report): Shares of this bank have gained 25% so far this year. Its Zacks Consensus Estimate for the current-year earnings has been revised 1.9% downward over the last 60 days. This Fairfax, VA-based lender carries a Zacks Rank of 4.
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>>
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year.See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.