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.
TCF Financial Gains From Digitization Efforts, Costs a Woe
Read MoreHide Full Article
On May 7, we issued an updated research report on TCF Financial Corporation . The company’s digitization efforts to meet customer requirements and solid organic growth indicate its upside potential. However, escalating expenses and declining fee income remain concerns.
Shares of the company have gained 49.8% in a year’s time, outperforming 13.1% growth of the industry it belongs to.
Moreover, the Zacks Consensus Estimate for current-year earnings has been revised 1.1% upward, over the last 30 days. As a result, it currently carries a Zacks Rank #3 (Hold).
TCF Financial’s consistent organic growth keeps us encouraged. Over the five years ended 2017, the company’s loans and deposits have witnessed a CAGR of 4.8% and 6.2%, respectively. Also, aided by the improving economy, the uptrend in these balances is likely to continue in the near term.
The company’s focus on strengthening footprint in the Chicago region along with introduction of digital platforms are likely to help it better serve customers. In 2017, TCF Financial launched the digital platform, which helped it attract new customers and deposits.
Further, its credit metrics have been improving over the last few quarters. Also, its diversified loan portfolio helps in keeping credit quality at normalized levels.
However, consistently falling ATM revenues along with fees and service charges (together contributing 72% of total banking fees revenues) are likely to keep its top line under pressure.
Also, the company’s expense base has witnessed a CAGR of 6.7% over the last five years (ended 2017). Thus, such continuous uptrend in costs is likely to strain bottom-line growth.
Stocks to Consider
Lazard’s (LAZ - Free Report) Zacks Consensus Estimate for earnings for 2018 was revised 9% upward, in the last 60 days. Also, its share price has increased 36.9% in the past 12 months. The stock carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cullen/Frost Bankers (CFR - Free Report) currently carries a Zacks Rank #2. The stock’s 2018 earnings estimates were revised 5.4% upward, in the last 60 days. Further, the company’s shares have gained 25.1% in a year’s time.
People’s Bancorp’s (PEBO - Free Report) Zacks Consensus Estimate for earnings for current year was revised 1.6% upward, over the last 60 days. Moreover, in the past year, its shares have gained 9.4%. Also, it carries a Zacks Rank of 2.
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.
Image: Bigstock
TCF Financial Gains From Digitization Efforts, Costs a Woe
On May 7, we issued an updated research report on TCF Financial Corporation . The company’s digitization efforts to meet customer requirements and solid organic growth indicate its upside potential. However, escalating expenses and declining fee income remain concerns.
Shares of the company have gained 49.8% in a year’s time, outperforming 13.1% growth of the industry it belongs to.
Moreover, the Zacks Consensus Estimate for current-year earnings has been revised 1.1% upward, over the last 30 days. As a result, it currently carries a Zacks Rank #3 (Hold).
TCF Financial’s consistent organic growth keeps us encouraged. Over the five years ended 2017, the company’s loans and deposits have witnessed a CAGR of 4.8% and 6.2%, respectively. Also, aided by the improving economy, the uptrend in these balances is likely to continue in the near term.
The company’s focus on strengthening footprint in the Chicago region along with introduction of digital platforms are likely to help it better serve customers. In 2017, TCF Financial launched the digital platform, which helped it attract new customers and deposits.
Further, its credit metrics have been improving over the last few quarters. Also, its diversified loan portfolio helps in keeping credit quality at normalized levels.
However, consistently falling ATM revenues along with fees and service charges (together contributing 72% of total banking fees revenues) are likely to keep its top line under pressure.
Also, the company’s expense base has witnessed a CAGR of 6.7% over the last five years (ended 2017). Thus, such continuous uptrend in costs is likely to strain bottom-line growth.
Stocks to Consider
Lazard’s (LAZ - Free Report) Zacks Consensus Estimate for earnings for 2018 was revised 9% upward, in the last 60 days. Also, its share price has increased 36.9% in the past 12 months. The stock carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cullen/Frost Bankers (CFR - Free Report) currently carries a Zacks Rank #2. The stock’s 2018 earnings estimates were revised 5.4% upward, in the last 60 days. Further, the company’s shares have gained 25.1% in a year’s time.
People’s Bancorp’s (PEBO - Free Report) Zacks Consensus Estimate for earnings for current year was revised 1.6% upward, over the last 60 days. Moreover, in the past year, its shares have gained 9.4%. Also, it carries a Zacks Rank of 2.
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>>