It seems to be a wise idea to invest in MidWestOne Financial Group (MOFG - Free Report) stock right now. The Iowa City, IO-based company is well poised for revenue growth, driven by continued improvement in loans and deposits, and inorganic growth efforts. Moreover, it has a solid balance sheet position.
Further, MidWestOne Financial’s2019 and 2020 earnings estimates have moved up 3.4% and 3.5%, respectively, over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
Moreover, the stock has been performing well. So far this year, shares of MidWestOne Financial have rallied 25.5%, outperforming rise of 9.9% for the industry it belongs to.
What Makes MidWestOne Financial a Solid Pick
Revenue strength: MidWestOne Financial has been witnessing consistent improvement in revenues, driven by growth in loans and deposit balances. Over the last five years (ended 2018), total revenues recorded a compound annual growth rate (CAGR) of 17.4%.
Moreover, backed by strong balance sheet and liquidity position, the company is expected to be able to undertake inorganic expansion moves. Earlier this year, it acquired ATBancorp for $151 million, which is likely to boost its market share.
Notably, the company’s revenues are projected to grow 33% in 2019 and 12.4% in 2020.
Earnings growth: Though MidWestOne Financial’s earnings declined 1.6% over the past three to five years, the same is expected to improve going forward. The company’s projected earnings growth rate is 20.5% and 4.7% for 2019 and 2020, respectively.
Capital deployment plan: MidWestOne Financial has an impressive capital deployment plan. Since 2010, the bank has been increasing its dividend annually. In January, the company announced a 4% hike in quarterly dividend to 20.25 cents per share.
Also, MidWestOne Financial has a share buyback plan in place. As of Jun 30, 2019, the company had $1.1 million authorization left. Give the strong balance sheet position and earnings strength, its capital deployment activities seem sustainable.
Stock seems undervalued: MidWestOne Financial looks undervalued with respect to its price/book and price/earnings (F1) ratios. The company has a P/B ratio of 1.02, which is below the industry average of 1.22. Also, its P/E (F1) ratioof9.99 is lower than the industry average of 11.58.
Also, the stock has a Value Score of B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Other Stocks Worth Considering
Hilltop Holdings Inc. (HTH - Free Report) earnings estimates for the current year have been revised 11.6% upward over the past 60 days. Its shares have surged 38.6% year to date. The stock presently has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Business Financial Services, Inc. (FBIZ - Free Report) currently carries a Zacks Rank #2. The company’s 2019 earnings estimates have moved 11.9% upward over the past 60 days. Its shares have rallied 26.4% so far this year.
The Zacks Consensus Estimate for earnings for Mackinac Financial Corporation has increased 1.5% over the past 60 days. Its shares have gained 14.9% so far this year. It currently carries a Zacks Rank of 2.
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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 >>
It seems to be a wise idea to invest in MidWestOne Financial Group (MOFG - Free Report) stock right now. The Iowa City, IO-based company is well poised for revenue growth, driven by continued improvement in loans and deposits, and inorganic growth efforts. Moreover, it has a solid balance sheet position.
Further, MidWestOne Financial’s2019 and 2020 earnings estimates have moved up 3.4% and 3.5%, respectively, over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
Moreover, the stock has been performing well. So far this year, shares of MidWestOne Financial have rallied 25.5%, outperforming rise of 9.9% for the industry it belongs to.
What Makes MidWestOne Financial a Solid Pick
Revenue strength: MidWestOne Financial has been witnessing consistent improvement in revenues, driven by growth in loans and deposit balances. Over the last five years (ended 2018), total revenues recorded a compound annual growth rate (CAGR) of 17.4%.
Moreover, backed by strong balance sheet and liquidity position, the company is expected to be able to undertake inorganic expansion moves. Earlier this year, it acquired ATBancorp for $151 million, which is likely to boost its market share.
Notably, the company’s revenues are projected to grow 33% in 2019 and 12.4% in 2020.
Earnings growth: Though MidWestOne Financial’s earnings declined 1.6% over the past three to five years, the same is expected to improve going forward. The company’s projected earnings growth rate is 20.5% and 4.7% for 2019 and 2020, respectively.
Capital deployment plan: MidWestOne Financial has an impressive capital deployment plan. Since 2010, the bank has been increasing its dividend annually. In January, the company announced a 4% hike in quarterly dividend to 20.25 cents per share.
Also, MidWestOne Financial has a share buyback plan in place. As of Jun 30, 2019, the company had $1.1 million authorization left. Give the strong balance sheet position and earnings strength, its capital deployment activities seem sustainable.
Stock seems undervalued: MidWestOne Financial looks undervalued with respect to its price/book and price/earnings (F1) ratios. The company has a P/B ratio of 1.02, which is below the industry average of 1.22. Also, its P/E (F1) ratioof9.99 is lower than the industry average of 11.58.
Also, the stock has a Value Score of B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Other Stocks Worth Considering
Hilltop Holdings Inc. (HTH - Free Report) earnings estimates for the current year have been revised 11.6% upward over the past 60 days. Its shares have surged 38.6% year to date. The stock presently has a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
First Business Financial Services, Inc. (FBIZ - Free Report) currently carries a Zacks Rank #2. The company’s 2019 earnings estimates have moved 11.9% upward over the past 60 days. Its shares have rallied 26.4% so far this year.
The Zacks Consensus Estimate for earnings for Mackinac Financial Corporation has increased 1.5% over the past 60 days. Its shares have gained 14.9% so far this year. It currently 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>>
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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