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4 Reasons That Make Preferred Bank (PFBC) Stock a Solid Bet
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Preferred Bank (PFBC - Free Report) appears to be a promising bet now given its solid organic growth and robust fundamentals. Also, its revenue growth prospects are impressive. Further, the company remains committed to driving operating efficiency through several initiatives.
Further, analysts are bullish on the stock. The Zacks Consensus Estimate for current-year earnings has been revised 4.3% and 9.4% upward for 2020 and 2021, respectively, over the past 60 days. As a result, the stock currently carries a Zacks Rank #2 (Buy).
So far this year, shares of Preferred Bank have rallied 19% compared with 31.1% rise of the industry it belongs to.
Why Preferred Bank is an Impressive Pick
Earnings Strength: Preferred Bank recorded an earnings growth rate of 22.8% over the past three to five years, higher than the industry’s 10.7% rise. While earnings are projected to decline 14.5% in 2020, the trend is likely to reverse in 2021 on the company’s efforts to grow.
Moreover, it has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the beat being 12.4%, on average.
Revenue Growth: Preferred Bank has been witnessing consistent improvement in revenues over the past few years. Revenues witnessed a CAGR of 24% over the last five years (2015-2019). Further, the top line is expected to increase 4.1% in 2020 and 2% in 2021.
Impressive Balance Sheet Growth: Preferred Bank’s loans and deposits have witnessed a CAGR of 16% and 14.9%, respectively, over a five-year period (ended 2019). Though loan demand has been soft due to the pandemic woes, the same is expected to improve once the economy recovers and business activities resume in full swing.
Superior Return on Equity (ROE): Preferred Bank’s ROE is 14.08%, higher than the industry average of 8.75%. This reflects its superiority in terms of utilizing funds.
Earnings estimates for Glacier Bancorp have been revised 10.5% upward for 2020 over the past 60 days. Its share price has rallied 25.5% over the past six months.
First Hawaiian’s earnings estimates have been revised upward by 21.8% for the current year over the past 60 days. Also, in six months’ time, its share price has increased 28.3%.
Northrim has witnessed upward earnings estimate revision of 27.1% for the current year over the past 60 days. Also, its share price has seen a 44.3% rise over the past six months.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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4 Reasons That Make Preferred Bank (PFBC) Stock a Solid Bet
Preferred Bank (PFBC - Free Report) appears to be a promising bet now given its solid organic growth and robust fundamentals. Also, its revenue growth prospects are impressive. Further, the company remains committed to driving operating efficiency through several initiatives.
Further, analysts are bullish on the stock. The Zacks Consensus Estimate for current-year earnings has been revised 4.3% and 9.4% upward for 2020 and 2021, respectively, over the past 60 days. As a result, the stock currently carries a Zacks Rank #2 (Buy).
So far this year, shares of Preferred Bank have rallied 19% compared with 31.1% rise of the industry it belongs to.
Why Preferred Bank is an Impressive Pick
Earnings Strength: Preferred Bank recorded an earnings growth rate of 22.8% over the past three to five years, higher than the industry’s 10.7% rise. While earnings are projected to decline 14.5% in 2020, the trend is likely to reverse in 2021 on the company’s efforts to grow.
Moreover, it has an impressive earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the beat being 12.4%, on average.
Revenue Growth: Preferred Bank has been witnessing consistent improvement in revenues over the past few years. Revenues witnessed a CAGR of 24% over the last five years (2015-2019). Further, the top line is expected to increase 4.1% in 2020 and 2% in 2021.
Impressive Balance Sheet Growth: Preferred Bank’s loans and deposits have witnessed a CAGR of 16% and 14.9%, respectively, over a five-year period (ended 2019). Though loan demand has been soft due to the pandemic woes, the same is expected to improve once the economy recovers and business activities resume in full swing.
Superior Return on Equity (ROE): Preferred Bank’s ROE is 14.08%, higher than the industry average of 8.75%. This reflects its superiority in terms of utilizing funds.
Other Stocks to Consider
Some other top-ranked finance stocks are Glacier Bancorp, Inc. (GBCI - Free Report) , First Hawaiian, Inc. (FHB - Free Report) and Northrim BanCorp Inc (NRIM - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings estimates for Glacier Bancorp have been revised 10.5% upward for 2020 over the past 60 days. Its share price has rallied 25.5% over the past six months.
First Hawaiian’s earnings estimates have been revised upward by 21.8% for the current year over the past 60 days. Also, in six months’ time, its share price has increased 28.3%.
Northrim has witnessed upward earnings estimate revision of 27.1% for the current year over the past 60 days. Also, its share price has seen a 44.3% rise over the past six months.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>