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4 Reasons Why BankUnited (BKU) Stock is a Solid Pick Now
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Banking stocks have been witnessing a bullish trend for quite some time now. The Fed rate hike and continued improvement in the domestic economy along with lower tax rates and potential less stringent regulations are the primary reasons for investors’ optimism.
So, it is the right time to add a few banking stocks to your portfolio. Today, we bring one such stock — BankUnited, Inc. (BKU - Free Report) — that continues to depict strong fundamentals and improving prospects.
Also, analysts are optimistic about the stock. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.3% upward over the past 30 days.
Further, this Zacks Rank #2 (Buy) stock has rallied 10.8% over the past six months, outperforming industry’s growth of 6.3%.
Why an Attractive Pick?
Revenue strength: BankUnited’s net revenues have witnessed a compounded annual growth rate of 14% over the last five years (2013-2017). The solid top-line increase was backed by strong loan and deposit growth. The company’s projected sales growth of 1.4% for 2018 ensures continuation of the upward revenue trend.
Earnings growth: BankUnited has witnessed 2.8% growth in earnings per share (EPS) over the last three to five years. Notably, earnings are estimated to grow at the rate of 20.1% for 2018.
In addition, the company’s long-term (three to five years) estimated EPS growth rate of 8.9% promises rewards for investors, over the long run.
Additionally, the company has a Growth Score of B and a VGM Score of B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Superior Return on Equity (ROE): BankUnited’s ROE ratio is 10.83% compared with the industry average of 10.68%. This indicates that the company reinvests more efficiently compared to the industry.
Stock seems undervalued: BankUnited has P/E and P/B ratios of 12.69 and 1.43 compared with the industry average of 13.07 and 1.52, respectively. Based on these ratios, the stock seems undervalued.
M&T Bank is projected to record 30.7% year-over year earnings growth for 2018. Also, its shares have rallied 16.8%, over the past year.
Hancock Holding is estimated to witness 31.2% rise in 2018 earnings. Moreover, over the past year, its share price has increased 14.3%.
People's Utah Bancorp is likely to record 32% year-over-year increase in 2018 earnings. Further, its share price has risen 22.1%, over the past year.
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Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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4 Reasons Why BankUnited (BKU) Stock is a Solid Pick Now
Banking stocks have been witnessing a bullish trend for quite some time now. The Fed rate hike and continued improvement in the domestic economy along with lower tax rates and potential less stringent regulations are the primary reasons for investors’ optimism.
So, it is the right time to add a few banking stocks to your portfolio. Today, we bring one such stock — BankUnited, Inc. (BKU - Free Report) — that continues to depict strong fundamentals and improving prospects.
Also, analysts are optimistic about the stock. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 1.3% upward over the past 30 days.
Further, this Zacks Rank #2 (Buy) stock has rallied 10.8% over the past six months, outperforming industry’s growth of 6.3%.
Why an Attractive Pick?
Revenue strength: BankUnited’s net revenues have witnessed a compounded annual growth rate of 14% over the last five years (2013-2017). The solid top-line increase was backed by strong loan and deposit growth. The company’s projected sales growth of 1.4% for 2018 ensures continuation of the upward revenue trend.
Earnings growth: BankUnited has witnessed 2.8% growth in earnings per share (EPS) over the last three to five years. Notably, earnings are estimated to grow at the rate of 20.1% for 2018.
In addition, the company’s long-term (three to five years) estimated EPS growth rate of 8.9% promises rewards for investors, over the long run.
Additionally, the company has a Growth Score of B and a VGM Score of B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Superior Return on Equity (ROE): BankUnited’s ROE ratio is 10.83% compared with the industry average of 10.68%. This indicates that the company reinvests more efficiently compared to the industry.
Stock seems undervalued: BankUnited has P/E and P/B ratios of 12.69 and 1.43 compared with the industry average of 13.07 and 1.52, respectively. Based on these ratios, the stock seems undervalued.
Other Stocks Worth a Look
Other bank stocks worth considering are M&T Bank Corporation (MTB - Free Report) , Hancock Holding Company and People's Utah Bancorp . All these carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
M&T Bank is projected to record 30.7% year-over year earnings growth for 2018. Also, its shares have rallied 16.8%, over the past year.
Hancock Holding is estimated to witness 31.2% rise in 2018 earnings. Moreover, over the past year, its share price has increased 14.3%.
People's Utah Bancorp is likely to record 32% year-over-year increase in 2018 earnings. Further, its share price has risen 22.1%, over the past year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
See This Ticker Free >>