Back to top

Analyst Blog

Shares of UBS AG (UBS - Analyst Report) crafted a new 52-week high, touching $18.71 in the middle of the trading session on May 20. The closing price of this foreign bank represents a solid year-to-date return of 14.6%. The trading volume for the session was 2.6 million shares.

Despite hitting its 52-week high, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its strong estimate revisions over the last 60 days and expected long-term earnings growth of 20.0%.

Growth Drivers

Impressive first-quarter 2013 results – including lower net charges for provisions for litigation and regulatory matters as well as reduced own credit loss – along with a strong capital position were the primary growth drivers for UBS AG.

On Apr 30, UBS AG reported first-quarter net income attributable to shareholders of CHF 988 million ($1,062.3 million), which substantially outpaced the prior-quarter’s loss of CHF 1.9 billion ($2.0 billion). The company experienced higher net interest and trading revenues along with elevated net fee and commission income. Further, decreased operating expenses acted as a tailwind for the quarter.

Moreover, at UBS AG’s Investment Bank unit, the company experienced a pre-tax profit of around CHF 977 million ($1,050.5 million) compared with a loss of CHF 243 million ($260.9 million) in the prior quarter, reflecting improved markets.

Estimate Revisions Show Potency

Over the last 60 days, the Zacks Consensus Estimate for 2013 has moved up by 10.3% to $1.50 per share. For 2014, the Zacks Consensus Estimate advanced 14.4% to $1.83 per share.

Other foreign banks that are worth considering include National Bank of Canada (NTIOF), The Toronto-Dominion Bank (TD - Snapshot Report) and Deutsche Bank AG (DB - Analyst Report), all carrying a Zacks Rank #2 (Buy).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
PLANAR SYST… PLNR 4.44 +5.21%
BITAUTO HOL… BITA 81.71 +5.12%
CTPARTNERS… CTP 16.66 +4.26%
CHINA BIOLO… CBPO 47.91 +3.30%
MALLINCKROD… MNK 72.94 +2.85%