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Here's Why You Should Buy People's Utah Bancorp (PUB) Stock

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People's Utah Bancorp offers a profitable investment opportunity, driven by steady earnings growth and solid prospects. Also, higher interest rates are expected to support top-line growth.

The company is also witnessing upward estimate revisions, reflecting analysts’ optimism about its growth prospects. Over the past 60 days, the Zacks Consensus Estimate for 2018 and 2019 has been raised marginally.

Further, this Zacks Rank #2 (Buy) stock has rallied 7% over the past two years against the industry’s decline of 18.9%.



What Makes People's Utah Bancorp a Solid Investment Option?

Earnings growth: People's Utah Bancorp witnessed earnings growth of 17.9% in the last three to five years. The earnings growth rate for 2018 and 2019 is anticipated to be 38.6% and 6.5%, respectively, ensuring continued momentum.

Also, People's Utah Bancorp has a decent earnings surprise history. The bank has an average trailing four-quarter positive earnings surprise of 5.2%.

Further, the company’s long-term (three to five years) estimated earnings growth rate of 8% promises rewards for investors.

Revenue strength: People's Utah Bancorp has been witnessing consistent improvement in revenues for the past few years. Over the last three years (2015-2017), the company’s revenues witnessed a CAGR of 11.7%. Driven by improving rate environment and loan demand, its top line is expected to grow 26.2% in 2018 and 4.8% for 2019.

Strong leverage: People's Utah Bancorp’s debt/equity ratio is nil compared with the industry average of 0.18. The relatively strong financial health of the company will help it perform better than its peers under a dynamic business environment.

Superior Return on Equity (ROE): People's Utah Bancorp has ROE of 14.14%, better than the industry average of 11.44%. This shows that the company reinvests its cash more efficiently.

Other Stocks Worth a Look

Some other top-ranked stocks in the same industry are Zions Bancorporation (ZION - Free Report) , CPB Inc. (CPF - Free Report) and Western Alliance Bancorporation (WAL - Free Report) . All three stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zions has witnessed an upward earnings estimate revision of nearly 1% for the current year, over the past 60 days. Also, the stock has a Value Score of A. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

Western Alliance Bancorporation’s earnings estimates have remained stable for the current year, over the past 60 days. It has a Value Score of B.

CPB Inc. has recorded an upward earnings estimate revision of 1% for the current year, over the past 60 days. Also, it has a Value Score of B.

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