Back to top
Read MoreHide Full Article

Shares of Bank of Hawaii Corporation (BOH - Free Report) crafted a new 52-week high, touching $59.39 in the first half of the trading session on Nov 8. However, the stock closed the session at $59.17, which reflects a solid year-to-date return of 33.1%. The trading volume for the session was 222,434 shares.

Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 7.3%.

Growth Drivers

Impressive third-quarter 2013 results – including a positive earnings surprise of 1.19% and significant improvement in the credit quality – as well as a strong capital position were the primary growth drivers for Bank of Hawaii.

On Oct 28, Bank of Hawaii reported its third-quarter 2013 earnings of 85 cents per share, beating the Zacks Consensus Estimate by a penny. However, results were below the prior-year quarter earnings of 92 cents.

A year-over-year decline of 2.2% in non-interest expense and a substantial rise in deposits and loans were the tailwinds for the quarter. Moreover, the company’s capital ratios reflect its strong position. However, a 2.9% dip in net interest income and 6.1% fall in non-interest income acted as headwinds for the quarter.

Estimate Revisions Show Potency

Over the last 30 days, 4 out of 9 estimates for 2013 have been revised upward, lifting the Zacks Consensus Estimate by 0.3% to $3.37 per share. For 2014, 6 out of 9 estimates moved north, helping the Zacks Consensus Estimate advance 1.7% to $3.53 per share.

Some better performing North-West banks include Cascade Bancorp , Glacier Bancorp Inc. (GBCI - Free Report) and Preferred Bank (PFBC - Free Report) . All these companies carry a Zacks Rank #1 (Strong Buy).

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Bank of Hawaii Corporation (BOH) - free report >>

Preferred Bank (PFBC) - free report >>

Glacier Bancorp, Inc. (GBCI) - free report >>

More from Zacks Analyst Blog

You May Like