On Oct 7, 2016, we issued an updated research report on Bank of the Ozarks, Inc. . Despite mounting expenses and margin compression, the company's impressive inorganic growth strategy ensures steady growth.
Bank of the Ozarks’ strategy to grow through acquisitions is expected to continue further and augment top-line growth. In Jul 2016, the company closed the acquisitions of Community & Southern Holdings and C1 Financial, which are expected to be accretive to its earnings over the next few quarters. Further, given its strong balance sheet position, the company is estimated to continue expanding through acquisitions, with primary focus on locations where it does not have offices yet.
Further, Bank of the Ozarks has been witnessing improvement in asset quality. With the overall economic recovery, the asset quality improvement is likely to continue.
However, like most banks, Bank of the Ozarks continues to faces margin compression given the low rate environment. Management expects net interest margin (excluding the effect of any future acquisitions) to remain under pressure in 2016.
Also, persistently rising operating expenses remains a matter of concern for Bank of the Ozarks. Going forward, expenses are anticipated to further rise as the company continues with its expansion.
Notably, over the past 30 days, the Zacks Consensus Estimate for 2016 and 2017 remained stable at $2.41 and $3.01, respectively.
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Farmers Capital Bank has been witnessing upward estimate revisions over the last 30 days. So far this year, the company’s share price has been up more than 12%.
FCB Financial has been witnessing upward estimate revisions over the last seven days. Further, the stock has risen over 5% so far this year.
Stock Yards Bancorp has been witnessing upward estimate revisions over the last 60 days. Also, the company’s shares have surged nearly 32% so far this year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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 >>
On Oct 7, 2016, we issued an updated research report on Bank of the Ozarks, Inc. . Despite mounting expenses and margin compression, the company's impressive inorganic growth strategy ensures steady growth.
Bank of the Ozarks’ strategy to grow through acquisitions is expected to continue further and augment top-line growth. In Jul 2016, the company closed the acquisitions of Community & Southern Holdings and C1 Financial, which are expected to be accretive to its earnings over the next few quarters. Further, given its strong balance sheet position, the company is estimated to continue expanding through acquisitions, with primary focus on locations where it does not have offices yet.
Further, Bank of the Ozarks has been witnessing improvement in asset quality. With the overall economic recovery, the asset quality improvement is likely to continue.
However, like most banks, Bank of the Ozarks continues to faces margin compression given the low rate environment. Management expects net interest margin (excluding the effect of any future acquisitions) to remain under pressure in 2016.
Also, persistently rising operating expenses remains a matter of concern for Bank of the Ozarks. Going forward, expenses are anticipated to further rise as the company continues with its expansion.
Notably, over the past 30 days, the Zacks Consensus Estimate for 2016 and 2017 remained stable at $2.41 and $3.01, respectively.
Stocks Worth Considering
Farmers Capital Bank has been witnessing upward estimate revisions over the last 30 days. So far this year, the company’s share price has been up more than 12%.
FCB Financial has been witnessing upward estimate revisions over the last seven days. Further, the stock has risen over 5% so far this year.
Stock Yards Bancorp has been witnessing upward estimate revisions over the last 60 days. Also, the company’s shares have surged nearly 32% so far this year.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
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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