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4 Reasons Why You Should Bet on S&T Bancorp (STBA) Stock Now
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Improving operating backdrop, rising rate environment, expectations of lesser regulations and strengthening of the domestic economy are expected to continue to support banking stocks. Keeping this in mind, we have selected S&T Bancorp (STBA - Free Report) for your consideration.
A positive trend in estimate revisions reflect optimism regarding the company’s earnings growth prospects. The Zacks Consensus Estimate for S&T Bancorp’s current-quarter earnings has moved up 3.3% over the last 60 days. Also, the current-year’s earnings estimates have climbed up 3% in the same time period. As a result, the stock currently carries a Zacks Rank #2 (Buy).
The stock has surged 18.1% over the past six months, widely outperforming the industry’s 3.9% rally.
Here’s What Might Drive the Stock Higher
Earnings Strength: While S&T Bancorp’s historical earnings per share (EPS) growth rate of 10% compares favorably with the industry average of 8.5%, investors should really focus on its projected EPS growth (F1/F0). Here, the company is looking to grow at a rate of 15.8%, substantially higher than the industry average of 10.5%.
Revenue Growth: S&T Bancorp has been witnessing consistent improvement in revenues for the past few years. Revenues witnessed a compound annual growth rate of 16.7% over the last three years (2014-2016). Further, the top line is expected to increase 12% in 2017 compared with no growth for the industry.
Favorable ROE: S&T Bancorp’s return on equity (ROE) supports its growth potential. It’s ROE of 9.41% compares favorably with the industry average of 8.79%, implying that it is efficient in using its shareholders’ funds.
Strong Leverage: S&T Bancorp has a debt/equity ratio of 0.07 compared with the industry’s average of 0.52. This reflects the relatively strong financial health of the company, which will help it perform better than its peers under a dynamic business environment.
ConnectOne Bancorp’s Zacks Consensus Estimate was revised 5.9% upward for the current year, in the last 60 days. The company’s share price increased 20.5% in the past six months.
CNB Financial witnessed an upward earnings estimate revision of 4.4% for the current year, in the last 60 days. Its share price increased 26.9% in the past six months.
First Commonwealth Financial witnessed upward earnings estimate revision of 2.5% for the current year, in the last 60 days. Its share price increased 15% in the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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4 Reasons Why You Should Bet on S&T Bancorp (STBA) Stock Now
Improving operating backdrop, rising rate environment, expectations of lesser regulations and strengthening of the domestic economy are expected to continue to support banking stocks. Keeping this in mind, we have selected S&T Bancorp (STBA - Free Report) for your consideration.
A positive trend in estimate revisions reflect optimism regarding the company’s earnings growth prospects. The Zacks Consensus Estimate for S&T Bancorp’s current-quarter earnings has moved up 3.3% over the last 60 days. Also, the current-year’s earnings estimates have climbed up 3% in the same time period. As a result, the stock currently carries a Zacks Rank #2 (Buy).
The stock has surged 18.1% over the past six months, widely outperforming the industry’s 3.9% rally.
Here’s What Might Drive the Stock Higher
Earnings Strength: While S&T Bancorp’s historical earnings per share (EPS) growth rate of 10% compares favorably with the industry average of 8.5%, investors should really focus on its projected EPS growth (F1/F0). Here, the company is looking to grow at a rate of 15.8%, substantially higher than the industry average of 10.5%.
Revenue Growth: S&T Bancorp has been witnessing consistent improvement in revenues for the past few years. Revenues witnessed a compound annual growth rate of 16.7% over the last three years (2014-2016). Further, the top line is expected to increase 12% in 2017 compared with no growth for the industry.
Favorable ROE: S&T Bancorp’s return on equity (ROE) supports its growth potential. It’s ROE of 9.41% compares favorably with the industry average of 8.79%, implying that it is efficient in using its shareholders’ funds.
Strong Leverage: S&T Bancorp has a debt/equity ratio of 0.07 compared with the industry’s average of 0.52. This reflects the 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 top-ranked stocks from the same space are ConnectOne Bancorp (CNOB - Free Report) and CNB Financial (CCNE - Free Report) sporting a Zacks #1 Rank (Strong Buy), and First Commonwealth Financial (FCF - Free Report) , carrying a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConnectOne Bancorp’s Zacks Consensus Estimate was revised 5.9% upward for the current year, in the last 60 days. The company’s share price increased 20.5% in the past six months.
CNB Financial witnessed an upward earnings estimate revision of 4.4% for the current year, in the last 60 days. Its share price increased 26.9% in the past six months.
First Commonwealth Financial witnessed upward earnings estimate revision of 2.5% for the current year, in the last 60 days. Its share price increased 15% in the past six months.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>