TriCo Bancshares (TCBK - Free Report) stock looks like an attractive pick right now, given its solid fundamentals and good growth prospects. On the expectation of more rate hikes this year (in addition to those in March and May), bank stocks are expected to benefit. Thus, investing in banks seems to be a good decision right now and one such bank is TCBK.
The company has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for TriCo Bancshares’ 2022 earnings has been revised 9.7% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of TCBK have gained 8.6% over the past six months against the 15.7% decline recorded by the industry.
We have mentioned some aspects below that make TriCo Bancshares a solid pick now.
Earnings Growth: The company’s earnings witnessed growth of 10.7% in the last three-five years. While earnings are expected to decline 5.1% in 2022, the trend will likely reverse after that. In 2023, earnings are projected to increase 16.5%.
Moreover, TCBK has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 1.6%.
Revenue Strength: TriCo Bancshares’ revenues witnessed a compound annual growth rate of 9.4% over the last six years (2016-2021). The top line is expected to continue to grow in the near term, which can be seen from the projected sales growth rates of 11.1% for 2022 and 10.6% for 2023.
Strong Leverage: TriCo Bancshares currently has a debt/equity ratio of 0.12, which is marginally lower than the industry average of 0.13. This shows that the company will likely be more financially stable than its peers, even in adverse economic conditions.
Other Key Picks
A couple of other top-ranked stocks from the finance space are Gladstone Capital Corporation (GLAD - Free Report) and Main Street Capital Corporation (MAIN - Free Report) . GLAD currently sports a Zacks Rank #1 (Strong Buy), while MAIN carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Gladstone Capital’s current fiscal year’s earnings has been revised 8.1% upward over the past 60 days. Over the past year, GLAD’s share price has increased 0.6%.
Main Street Capital’s current-year earnings estimates have been revised 1.4% upward over the past 60 days. MAIN’s shares have lost 7.5% over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
TriCo Bancshares (TCBK - Free Report) stock looks like an attractive pick right now, given its solid fundamentals and good growth prospects. On the expectation of more rate hikes this year (in addition to those in March and May), bank stocks are expected to benefit. Thus, investing in banks seems to be a good decision right now and one such bank is TCBK.
The company has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for TriCo Bancshares’ 2022 earnings has been revised 9.7% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of TCBK have gained 8.6% over the past six months against the 15.7% decline recorded by the industry.
We have mentioned some aspects below that make TriCo Bancshares a solid pick now.
Earnings Growth: The company’s earnings witnessed growth of 10.7% in the last three-five years. While earnings are expected to decline 5.1% in 2022, the trend will likely reverse after that. In 2023, earnings are projected to increase 16.5%.
Moreover, TCBK has a decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, the average beat being 1.6%.
Revenue Strength: TriCo Bancshares’ revenues witnessed a compound annual growth rate of 9.4% over the last six years (2016-2021). The top line is expected to continue to grow in the near term, which can be seen from the projected sales growth rates of 11.1% for 2022 and 10.6% for 2023.
Strong Leverage: TriCo Bancshares currently has a debt/equity ratio of 0.12, which is marginally lower than the industry average of 0.13. This shows that the company will likely be more financially stable than its peers, even in adverse economic conditions.
Other Key Picks
A couple of other top-ranked stocks from the finance space are Gladstone Capital Corporation (GLAD - Free Report) and Main Street Capital Corporation (MAIN - Free Report) . GLAD currently sports a Zacks Rank #1 (Strong Buy), while MAIN carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Gladstone Capital’s current fiscal year’s earnings has been revised 8.1% upward over the past 60 days. Over the past year, GLAD’s share price has increased 0.6%.
Main Street Capital’s current-year earnings estimates have been revised 1.4% upward over the past 60 days. MAIN’s shares have lost 7.5% over the past year.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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