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.
6 Reasons Why You Should Invest in Eagle Bancorp (EGBN) Now
Read MoreHide Full Article
Underlying strength and earnings growth prospects make Eagle Bancorp (EGBN - Free Report) a solid bet now. The company’s organic growth strategies have positioned it well for growth. Also, improving credit quality and solid balance sheet are major positives.
Analysts seem to be optimistic about the company’s prospects as the stock has been witnessing upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for 2017 earnings has been revised 2.5% upward to $3.33. As a result, it currently carries a Zacks Rank #2 (Buy).
Also, the stock has gained 10.3% year to date, as against the industry’s decline of 2.8%.
Key Driving Factors
Earnings Strength: Eagle Bancorp recorded earnings growth of 17.7% over the last three to five years. Retaining the earnings momentum, the earnings growth rate for the current year is anticipated at 16.4% compared with the industry average of 10.5%. Further, the company delivered average positive earnings surprise of 6% over the trailing four quarters.
Impressive Balance Sheet Growth: The company’s loans and deposits have witnessed a compounded annual growth rate (CAGR) of 22.8% and 21.8%, respectively, over a five-year period (ended 2016). This keeps Eagle Bancorp well poised for any opportunistic acquisitions in the future.
Revenue Growth: The company continues to make consistent progress toward driving sales. Revenues have recorded five-year (ended 2016) CAGR of around 17.7%. Further, revenues are likely to rise 8.4% in 2017 and 11.6% in 2018.
Improved Credit Quality: Eagle Bancorp’s credit quality has improved significantly over the years. In 2016, net-charge offs and non-performing assets declined nearly 41% and 43%, respectively, from the 2012 level.
Superior Return on Equity: The company has a return on equity of 12.37% compared with the industry average of 8.79%. This indicates that the company reinvests more efficiently compared to its peers.
Strong Leverage: Eagle Bancorp has a debt/equity ratio of 0.23 compared with the industry’s 0.52. It highlights the company’s financial flexibility.
Washington Federal’s earnings estimates were revised around 1% upward for 2017 in the last 60 days. Also, its share price has risen 6% over the past six months.
First Commonwealth Financial’s earnings estimates for 2017 have been revised 2.5% upward over the last 60 days. Further, in the past six months, the company’s shares have gained 15%.
BCB Bancorp witnessed a 10.8% rise in earnings estimates for the current year over the last 60 days. Moreover, year to date, its shares have rallied 11.1%.
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.
Image: Bigstock
6 Reasons Why You Should Invest in Eagle Bancorp (EGBN) Now
Underlying strength and earnings growth prospects make Eagle Bancorp (EGBN - Free Report) a solid bet now. The company’s organic growth strategies have positioned it well for growth. Also, improving credit quality and solid balance sheet are major positives.
Analysts seem to be optimistic about the company’s prospects as the stock has been witnessing upward estimate revisions. Over the past 60 days, the Zacks Consensus Estimate for 2017 earnings has been revised 2.5% upward to $3.33. As a result, it currently carries a Zacks Rank #2 (Buy).
Also, the stock has gained 10.3% year to date, as against the industry’s decline of 2.8%.
Key Driving Factors
Earnings Strength: Eagle Bancorp recorded earnings growth of 17.7% over the last three to five years. Retaining the earnings momentum, the earnings growth rate for the current year is anticipated at 16.4% compared with the industry average of 10.5%. Further, the company delivered average positive earnings surprise of 6% over the trailing four quarters.
Impressive Balance Sheet Growth: The company’s loans and deposits have witnessed a compounded annual growth rate (CAGR) of 22.8% and 21.8%, respectively, over a five-year period (ended 2016). This keeps Eagle Bancorp well poised for any opportunistic acquisitions in the future.
Revenue Growth: The company continues to make consistent progress toward driving sales. Revenues have recorded five-year (ended 2016) CAGR of around 17.7%. Further, revenues are likely to rise 8.4% in 2017 and 11.6% in 2018.
Improved Credit Quality: Eagle Bancorp’s credit quality has improved significantly over the years. In 2016, net-charge offs and non-performing assets declined nearly 41% and 43%, respectively, from the 2012 level.
Superior Return on Equity: The company has a return on equity of 12.37% compared with the industry average of 8.79%. This indicates that the company reinvests more efficiently compared to its peers.
Strong Leverage: Eagle Bancorp has a debt/equity ratio of 0.23 compared with the industry’s 0.52. It highlights the company’s financial flexibility.
Other Stocks to Consider
Some other top-ranked stocks in the space are Washington Federal (WAFD - Free Report) , First Commonwealth Financial Corporation (FCF - Free Report) and BCB Bancorp (BCBP - Free Report) . All the stocks carry a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Washington Federal’s earnings estimates were revised around 1% upward for 2017 in the last 60 days. Also, its share price has risen 6% over the past six months.
First Commonwealth Financial’s earnings estimates for 2017 have been revised 2.5% upward over the last 60 days. Further, in the past six months, the company’s shares have gained 15%.
BCB Bancorp witnessed a 10.8% rise in earnings estimates for the current year over the last 60 days. Moreover, year to date, its shares have rallied 11.1%.
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 >>