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Endeavor Group and Quaker Houghton have been highlighted as Zacks Bull and Bear of the Day
Read MoreHide Full Article
For Immediate Release
Chicago, IL – March 28, 2022 – Zacks Equity Research shares Endeavor Group (EDR - Free Report) as the Bull of the Day and Quaker Houghton (KWR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Associated Banc-Corp (ASB - Free Report) , Citizens Financial Group (CFG - Free Report) and Hancock Whitney Corp. (HWC - Free Report) .
Endeavor Group is a Zacks Rank #1 (Strong Buy) that operates as an entertainment, sports, and content company. The company is comprised of industry leaders including entertainment agency WME; sports, fashion, events and media company IMG; and premier mixed martial arts organization UFC.
After trading sideways for most of the year, the stock dipped to October lows on the broad market selloff. However, recent earnings helped the stock rally back above technical resistance. So, is the stock ready to finally break out?
Let's take a closer look.
More About EDR
Endeavor Group employs almost 7,700 and has a market cap of $22 billion. The company was founded in 2009 and is headquartered in Beverly Hills, California.
The company operates in three segments: Owned Sports Properties, Events, Experiences & Rights, and Representation.The stock has a Forward PE of 22 and Zacks Style Scores of "A" in Growth and Momentum.
Here is how the Endeavor describes its network on its website:
"The Endeavor network specializes in talent representation, sports operations & advisory, event & experiences management, media production & distribution, experiential marketing and brand licensing."
Big Q4 Earnings Beat
On March 16th, the company reported an impressive earnings beat that helped the stock rally about 10%. The 161% beat on EPS was the third straight and the company hasn't missed since becoming public.
Not only did the company beat on both the top and bottom lines, but Endeavor also guided FY22 higher. The company now sees revenues at $5.20-5.45B vs the $5.1B expected.
Management commented that Endeavor is seeing significant outperformance across the portfolio as the world emerged from the pandemic. They added that they are seeing "increased attendance at live events and continued heightened demand for premium content".
One negative note for some investors was the news that Elon Musk would resign from the board. The company noted that the resignation was not a result of disagreement or any matter having to do with company operations or polices.
Mixed Estimates
While the earnings print and guide was strong, estimates are not moving higher over the shorter term. However, looking to next year, estimates are shooting higher.
For next year, estimates have moved higher over the last 30 days. Analysts have hiked 23%, lifting from $1.29 from $1.59.
With long-term estimates going higher, the stock also got a price target lift from Piper Sandler. The firm kept its Overweight target and lifted its target to $37 from $35. The firm cites solid momentum and asset mix improving. Moreover, Piper seemed impressed with the Representation segment and the best full-year performance ever from UFC.
Since going public in May of last year, the stock has traded sideways, sticking close to the $30 level. EDR made a high late last year just over $35 and then came close to printing all time lows earlier this month, coming just shy of that mark at $24.
Earnings helped the stock bounce back over $30, which brought the stock over the 200-, 50-, and 21-day moving averages. This momentum has given the bulls control of the stock and if market conditions improve, we could see those highs from last year taken out and the stock move to $40.
If the stock were to move back under the $28 level, the bears have taken back control. If this were to happen, the short-term earnings situation might have to play out before the stock can break higher.
In Summary
Endeavor is a niche company that doesn't have a lot of eyeballs on it. The popular UFC brand could help the stock get going if the bulls can fight their way to the all-time highs.
If that scenario plays out, momentum could help the stock move higher while the long-term earnings story plays out.
As mentioned above, short-term estimates are falling, so the next couple earnings reports will likely be a catalyst for the stock to break higher.
Quaker Houghton is a Zacks Rank #5 (Strong Sell) that develops, produces and markets a range of formulated chemical specialty products for various heavy industrial and manufacturing applications.
The stock has struggled since November and after a recent earnings report, might continue to give bulls a hard time
About the Company
Quaker Houghton was founded in 1962 and is headquartered in Conshohocken, PA. The company has a market cap of $3.3 billion and employs 4,700.
The company offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals.
KWR pays a small dividend of 0.88% and has Forward PE of 25. The stock holds a Zacks Style Score of "B" in Growth, but "D" in both Value.
Q4 Earnings
The company has a pretty good track record of beating earnings, beating 10 quarters in a row going into 2022. However, the recent quarter was reported with a 20% EPS miss.
Raw material pressures and supply chain disruptions were to blame. While the company saw record net sales, the negatives are cutting into the bottom line.
Jefferies was out with analysis focusing on the raw material headwinds. They see issues continuing throughout the first half of the year, with price hikes partially offsetting the cost pressures. However, they don't see full margin recovery until 2023.
For those reasons, analysts like Jefferies and others are lowering estimates.
Estimates for the current quarter have seen a drop over the last 30 days, falling from $1.80 to $1.58, or 12%. For the current year, estimates have fallen 9% over that same time frame, from $8.25 to $7.54.
The negatives all are short-term, so perhaps things can improve if raw material costs stabilize. For now, the pressure remains, so investors must prepare for the estimates to drop further.
Technical Take
Quaker Houghton investors have had a great decade. The stock has gone from $50 just ten years ago to $300 last year. Most of that appreciation came over the last two years, when the stock jumped from a COVID bottom low of $107 to $301 early last year.
With the stock under $200 and the company facing fundamental issues, investors are unsure where to buy the dip.
The stock is coming off its recent lows of $167, but should find some resistance at the 50-day MA at $195. The stock likely struggles until it can bulls take back that level.
For now, dip buyers can rely on the 21-day moving average at $181. However, if that breaks, the recent lows could be in play.
In Summary
Quaker Houghton will have to get past its short-term fundamental issues before the stock gets back on track. For now, there is no evidence raw material headwinds have improved, so investors should avoid the stock.
Additional content:
Hawkish Remarks from Fed Officials Bode Well for Banks: 3 Picks
The Federal Reserve is ready to take all necessary steps to fight record-high inflation. Earlier this week, at "Policy Options for Sustainable and Inclusive Growth" 38th Annual Economic Policy Conference National Association for Business Economics, Jerome Powell said, "In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so."
On similar lines, other policymakers are commenting on taking "faster" action to tighten the monetary policy to control the accelerating inflation numbers, which are at a 40-year high now. Some of them are St. Louis Federal Reserve Bank President James Bullard, Richmond Federal Reserve Bank President Tom Barkin, Christopher J. Waller, a member of the Board of Governors of the Federal Reserve System and once dovish Minneapolis Federal Reserve Bank President Neel Kashkari.
In this context, bank stocks are the clear winners as they thrive in a rising rate environment. So, we are discussing three bank stocks – Associated Banc-Corp, Citizens Financial Group and Hancock Whitney Corp. – that will gain from higher interest rates.
Such aggressive comments following the announcement of the first interest rate hike since 2018 show the central bank's intention of controlling raging prices at any cost. Amid such hawkish remarks, the CME FedWatch Tool is already showing more than 70% probability of a 50 basis points hike in May, way above the 44% chance of a similar hike a week ago.
Though, like others sectors, bank stocks have dipped on broader geopolitical concerns arising out of the ongoing Russia-Ukraine conflict, rising interest rates and business expansion efforts will support their financials. The KBW Bank Index is down 4.7% so far this year, in line with the broader market bearish sentiments.
The Zacks Finance sector (of which banks constitute the major part) is currently trading at a price/tangible book value of 4.51X, significantly below the broader market average of 15.82X. Thus, beaten-down stock prices and cheap valuation make a good entry point for investors.
Our Choices
The shortlisted banks currently carry a Zacks Rank #2 (Buy) and have a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. You can see the complete list of today's Zacks #1 Rank stocks here.
Also, these banks have a market cap of more than $3 billion and have outperformed the broader market so far this year
Associated Banc-Corp: Based in Green Bay, WI, ASB provides a full range of financial products and services through more than 200 banking offices. The company's organic and inorganic growth efforts are likely to continue enhancing profitability.
Associated Banc-Corp is witnessing a steady improvement in revenues. Though the total revenues declined last year, the company expects expansion of its lending capabilities (as part of its new strategic plan) to help drive incremental revenues. Management anticipates net interest income to be more than $800 million and non-interest income to exceed $300 million this year.
ASB has been undertaking several measures to improve operating efficiency. In September 2021, it announced a new expansion plan, which will bolster operating leverage, and improve lending and digital capabilities. The company expects net total revenues to witness a CAGR of roughly 8% from the end of 2021 through 2023.
Given a solid balance sheet position, Associated Banc-Corp, which has a market cap of $3.5 billion, is well-positioned to grow on the back of strategic buyouts. In 2020, the company acquired First Staunton Bancshares, while in 2019, it took over 32 branches in Wisconsin. These, along with other past deals, are expected to be accretive to its earnings.
So far this year, shares of ASB have rallied 3.4%. Further, the Zacks Consensus Estimate for 2022 earnings has been revised 3.6% upward over the past two months to $1.71.
Citizens Financial: One of the largest retail bank holding companies in the United States, Citizens Financial has nearly 940 branches and 3,000 ATMs in 11 states across the New England, Mid-Atlantic and Midwest regions. It has a market cap of $21.1 billion.
This February, it acquired 80 East Coast branches and the national online deposit business from HSBC Bank, thereby strengthening its balance sheet position. In July 2020, Providence, RI-based CFG inked a deal to acquire Investors Bancorp in a bid to bolster its banking franchise.
The acquisitions of ISBC, combined with the HSBC branches, create a strong franchise in the greater New York City and Philadelphia Metro areas and New Jersey by adding 234 branches. Also, the acquisitions are expected to add $29 billion of deposits and $24 billion of loans, creating a strong foundation for top-line growth.
These aside, the company is undertaking strategic buyouts to expand the fee income mix and diversify revenues. These initiatives enable CFG to expand its product capabilities and geographic reach.
Apart from inorganic growth moves, solid loan and deposit balances are likely to aid the company's financials. CFG's loans and deposits recorded a CAGR of 3.7% and 11%, respectively, over the last three years (2019-2021). The company has been enhancing its deposit base by advancing its deposit-gathering capabilities and digital-first model focused on national expansion.
The Zacks Consensus Estimate for CFG's 2022 earnings has been revised 1.4% upward over the past 60 days to $4.46. In the year-to-date period, shares of the company have gained 2.9%.
Hancock Whitney: As a bank and financial holding company, HWC operates through 177 full-service bank branches and 240 ATMs across Mississippi, Alabama, Louisiana, Florida, and Texas. Supported by the continued rise in loan balances and inorganic growth efforts, the company's bottom line is likely to keep improving.
Hancock Whitney remains focused on its revenue growth strategy. Revenues (on a tax-equivalent basis) witnessed a CAGR of 6.9% over the last six years (ended 2021). Total loans saw a CAGR of 4.8% over the same time frame. Decent economic growth and a gradual rise in demand for loans will support the top line.
The company's strategic investments in growth and new markets are expected to bolster its top line and help in achieving an efficiency ratio of 55% by fourth-quarter 2022-end. Management projects total core loan growth to be 6-8% this year.
Apart from organic expansion efforts, HWC has undertaken acquisitions in the past, which continue to support its financials. Given the strong balance sheet position, the company is well-poised to further grow through inorganic means to diversify revenues and improve market share.
The Zacks Consensus Estimate for 2022 earnings has been revised almost 1% upward over the past 60 days to $5.29. So far this year, shares of HWC have gained 5.9%. The company has a market cap of $4.5 billion.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Endeavor Group and Quaker Houghton have been highlighted as Zacks Bull and Bear of the Day
For Immediate Release
Chicago, IL – March 28, 2022 – Zacks Equity Research shares Endeavor Group (EDR - Free Report) as the Bull of the Day and Quaker Houghton (KWR - Free Report) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Associated Banc-Corp (ASB - Free Report) , Citizens Financial Group (CFG - Free Report) and Hancock Whitney Corp. (HWC - Free Report) .
Here is a synopsis of all five stocks:
Bull of the Day:
Endeavor Group is a Zacks Rank #1 (Strong Buy) that operates as an entertainment, sports, and content company. The company is comprised of industry leaders including entertainment agency WME; sports, fashion, events and media company IMG; and premier mixed martial arts organization UFC.
After trading sideways for most of the year, the stock dipped to October lows on the broad market selloff. However, recent earnings helped the stock rally back above technical resistance. So, is the stock ready to finally break out?
Let's take a closer look.
More About EDR
Endeavor Group employs almost 7,700 and has a market cap of $22 billion. The company was founded in 2009 and is headquartered in Beverly Hills, California.
The company operates in three segments: Owned Sports Properties, Events, Experiences & Rights, and Representation.The stock has a Forward PE of 22 and Zacks Style Scores of "A" in Growth and Momentum.
Here is how the Endeavor describes its network on its website:
"The Endeavor network specializes in talent representation, sports operations & advisory, event & experiences management, media production & distribution, experiential marketing and brand licensing."
Big Q4 Earnings Beat
On March 16th, the company reported an impressive earnings beat that helped the stock rally about 10%. The 161% beat on EPS was the third straight and the company hasn't missed since becoming public.
Not only did the company beat on both the top and bottom lines, but Endeavor also guided FY22 higher. The company now sees revenues at $5.20-5.45B vs the $5.1B expected.
Management commented that Endeavor is seeing significant outperformance across the portfolio as the world emerged from the pandemic. They added that they are seeing "increased attendance at live events and continued heightened demand for premium content".
One negative note for some investors was the news that Elon Musk would resign from the board. The company noted that the resignation was not a result of disagreement or any matter having to do with company operations or polices.
Mixed Estimates
While the earnings print and guide was strong, estimates are not moving higher over the shorter term. However, looking to next year, estimates are shooting higher.
For next year, estimates have moved higher over the last 30 days. Analysts have hiked 23%, lifting from $1.29 from $1.59.
With long-term estimates going higher, the stock also got a price target lift from Piper Sandler. The firm kept its Overweight target and lifted its target to $37 from $35. The firm cites solid momentum and asset mix improving. Moreover, Piper seemed impressed with the Representation segment and the best full-year performance ever from UFC.
Endeavor Group Holdings, Inc. price-consensus-chart | Endeavor Group Holdings, Inc. Quote
The Technical Take
Since going public in May of last year, the stock has traded sideways, sticking close to the $30 level. EDR made a high late last year just over $35 and then came close to printing all time lows earlier this month, coming just shy of that mark at $24.
Earnings helped the stock bounce back over $30, which brought the stock over the 200-, 50-, and 21-day moving averages. This momentum has given the bulls control of the stock and if market conditions improve, we could see those highs from last year taken out and the stock move to $40.
If the stock were to move back under the $28 level, the bears have taken back control. If this were to happen, the short-term earnings situation might have to play out before the stock can break higher.
In Summary
Endeavor is a niche company that doesn't have a lot of eyeballs on it. The popular UFC brand could help the stock get going if the bulls can fight their way to the all-time highs.
If that scenario plays out, momentum could help the stock move higher while the long-term earnings story plays out.
As mentioned above, short-term estimates are falling, so the next couple earnings reports will likely be a catalyst for the stock to break higher.
Bear of the Day:
Quaker Houghton is a Zacks Rank #5 (Strong Sell) that develops, produces and markets a range of formulated chemical specialty products for various heavy industrial and manufacturing applications.
The stock has struggled since November and after a recent earnings report, might continue to give bulls a hard time
About the Company
Quaker Houghton was founded in 1962 and is headquartered in Conshohocken, PA. The company has a market cap of $3.3 billion and employs 4,700.
The company offers metal removal fluids, cleaning fluids, corrosion inhibitors, metal drawing and forming fluids, die cast mold releases, heat treatment and quenchants, metal forging fluids, hydraulic fluids, specialty greases, metal finishing fluids, offshore sub-sea energy control fluids, rolling lubricants, rod and wire drawing fluids, and surface treatment chemicals.
KWR pays a small dividend of 0.88% and has Forward PE of 25. The stock holds a Zacks Style Score of "B" in Growth, but "D" in both Value.
Q4 Earnings
The company has a pretty good track record of beating earnings, beating 10 quarters in a row going into 2022. However, the recent quarter was reported with a 20% EPS miss.
Raw material pressures and supply chain disruptions were to blame. While the company saw record net sales, the negatives are cutting into the bottom line.
Jefferies was out with analysis focusing on the raw material headwinds. They see issues continuing throughout the first half of the year, with price hikes partially offsetting the cost pressures. However, they don't see full margin recovery until 2023.
For those reasons, analysts like Jefferies and others are lowering estimates.
Quaker Houghton price-consensus-chart | Quaker Houghton Quote
Estimates
Estimates for the current quarter have seen a drop over the last 30 days, falling from $1.80 to $1.58, or 12%. For the current year, estimates have fallen 9% over that same time frame, from $8.25 to $7.54.
The negatives all are short-term, so perhaps things can improve if raw material costs stabilize. For now, the pressure remains, so investors must prepare for the estimates to drop further.
Technical Take
Quaker Houghton investors have had a great decade. The stock has gone from $50 just ten years ago to $300 last year. Most of that appreciation came over the last two years, when the stock jumped from a COVID bottom low of $107 to $301 early last year.
With the stock under $200 and the company facing fundamental issues, investors are unsure where to buy the dip.
The stock is coming off its recent lows of $167, but should find some resistance at the 50-day MA at $195. The stock likely struggles until it can bulls take back that level.
For now, dip buyers can rely on the 21-day moving average at $181. However, if that breaks, the recent lows could be in play.
In Summary
Quaker Houghton will have to get past its short-term fundamental issues before the stock gets back on track. For now, there is no evidence raw material headwinds have improved, so investors should avoid the stock.
Additional content:
Hawkish Remarks from Fed Officials Bode Well for Banks: 3 Picks
The Federal Reserve is ready to take all necessary steps to fight record-high inflation. Earlier this week, at "Policy Options for Sustainable and Inclusive Growth" 38th Annual Economic Policy Conference National Association for Business Economics, Jerome Powell said, "In particular, if we conclude that it is appropriate to move more aggressively by raising the federal funds rate by more than 25 basis points at a meeting or meetings, we will do so."
On similar lines, other policymakers are commenting on taking "faster" action to tighten the monetary policy to control the accelerating inflation numbers, which are at a 40-year high now. Some of them are St. Louis Federal Reserve Bank President James Bullard, Richmond Federal Reserve Bank President Tom Barkin, Christopher J. Waller, a member of the Board of Governors of the Federal Reserve System and once dovish Minneapolis Federal Reserve Bank President Neel Kashkari.
In this context, bank stocks are the clear winners as they thrive in a rising rate environment. So, we are discussing three bank stocks – Associated Banc-Corp, Citizens Financial Group and Hancock Whitney Corp. – that will gain from higher interest rates.
Such aggressive comments following the announcement of the first interest rate hike since 2018 show the central bank's intention of controlling raging prices at any cost. Amid such hawkish remarks, the CME FedWatch Tool is already showing more than 70% probability of a 50 basis points hike in May, way above the 44% chance of a similar hike a week ago.
Though, like others sectors, bank stocks have dipped on broader geopolitical concerns arising out of the ongoing Russia-Ukraine conflict, rising interest rates and business expansion efforts will support their financials. The KBW Bank Index is down 4.7% so far this year, in line with the broader market bearish sentiments.
The Zacks Finance sector (of which banks constitute the major part) is currently trading at a price/tangible book value of 4.51X, significantly below the broader market average of 15.82X. Thus, beaten-down stock prices and cheap valuation make a good entry point for investors.
Our Choices
The shortlisted banks currently carry a Zacks Rank #2 (Buy) and have a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or #2, offer the best investment opportunities for investors. You can see the complete list of today's Zacks #1 Rank stocks here.
Also, these banks have a market cap of more than $3 billion and have outperformed the broader market so far this year
Associated Banc-Corp: Based in Green Bay, WI, ASB provides a full range of financial products and services through more than 200 banking offices. The company's organic and inorganic growth efforts are likely to continue enhancing profitability.
Associated Banc-Corp is witnessing a steady improvement in revenues. Though the total revenues declined last year, the company expects expansion of its lending capabilities (as part of its new strategic plan) to help drive incremental revenues. Management anticipates net interest income to be more than $800 million and non-interest income to exceed $300 million this year.
ASB has been undertaking several measures to improve operating efficiency. In September 2021, it announced a new expansion plan, which will bolster operating leverage, and improve lending and digital capabilities. The company expects net total revenues to witness a CAGR of roughly 8% from the end of 2021 through 2023.
Given a solid balance sheet position, Associated Banc-Corp, which has a market cap of $3.5 billion, is well-positioned to grow on the back of strategic buyouts. In 2020, the company acquired First Staunton Bancshares, while in 2019, it took over 32 branches in Wisconsin. These, along with other past deals, are expected to be accretive to its earnings.
So far this year, shares of ASB have rallied 3.4%. Further, the Zacks Consensus Estimate for 2022 earnings has been revised 3.6% upward over the past two months to $1.71.
Citizens Financial: One of the largest retail bank holding companies in the United States, Citizens Financial has nearly 940 branches and 3,000 ATMs in 11 states across the New England, Mid-Atlantic and Midwest regions. It has a market cap of $21.1 billion.
This February, it acquired 80 East Coast branches and the national online deposit business from HSBC Bank, thereby strengthening its balance sheet position. In July 2020, Providence, RI-based CFG inked a deal to acquire Investors Bancorp in a bid to bolster its banking franchise.
The acquisitions of ISBC, combined with the HSBC branches, create a strong franchise in the greater New York City and Philadelphia Metro areas and New Jersey by adding 234 branches. Also, the acquisitions are expected to add $29 billion of deposits and $24 billion of loans, creating a strong foundation for top-line growth.
These aside, the company is undertaking strategic buyouts to expand the fee income mix and diversify revenues. These initiatives enable CFG to expand its product capabilities and geographic reach.
Apart from inorganic growth moves, solid loan and deposit balances are likely to aid the company's financials. CFG's loans and deposits recorded a CAGR of 3.7% and 11%, respectively, over the last three years (2019-2021). The company has been enhancing its deposit base by advancing its deposit-gathering capabilities and digital-first model focused on national expansion.
The Zacks Consensus Estimate for CFG's 2022 earnings has been revised 1.4% upward over the past 60 days to $4.46. In the year-to-date period, shares of the company have gained 2.9%.
Hancock Whitney: As a bank and financial holding company, HWC operates through 177 full-service bank branches and 240 ATMs across Mississippi, Alabama, Louisiana, Florida, and Texas. Supported by the continued rise in loan balances and inorganic growth efforts, the company's bottom line is likely to keep improving.
Hancock Whitney remains focused on its revenue growth strategy. Revenues (on a tax-equivalent basis) witnessed a CAGR of 6.9% over the last six years (ended 2021). Total loans saw a CAGR of 4.8% over the same time frame. Decent economic growth and a gradual rise in demand for loans will support the top line.
The company's strategic investments in growth and new markets are expected to bolster its top line and help in achieving an efficiency ratio of 55% by fourth-quarter 2022-end. Management projects total core loan growth to be 6-8% this year.
Apart from organic expansion efforts, HWC has undertaken acquisitions in the past, which continue to support its financials. Given the strong balance sheet position, the company is well-poised to further grow through inorganic means to diversify revenues and improve market share.
The Zacks Consensus Estimate for 2022 earnings has been revised almost 1% upward over the past 60 days to $5.29. So far this year, shares of HWC have gained 5.9%. The company has a market cap of $4.5 billion.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
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Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.