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4 Reasons Why You Should Grab M&T Bank's (MTB) Shares Now
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M&T Bank Corporation (MTB - Free Report) is well-positioned for top-line growth, supported by its leading banking franchise in the Northeast, the rise in loan balances and inorganic growth efforts. The bank is expected to keep enhancing shareholder value through efficient capital deployment activities, which reflect its strong balance sheet and liquidity positions. Hence, it seems to be a wise idea to add the stock to your portfolio now.
Analysts also seem optimistic regarding MTB’s earnings growth potential. The Zacks Consensus Estimate for the company’s current-year earnings has been revised marginally upward over the past week. Thus, MTB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking at its price performance, shares of the company have gained 19.8% in the past year against the industry’s decline of 27.1%.
Image Source: Zacks Investment Research
Some other factors, which make M&T Bankstock an attractive investment option at present, are mentioned below.
Earnings per share (EPS) Growth: The company recorded EPS growth, seeing a 20-year compound annual growth rate (CAGR) of 4.6%.
CBSH also has an impressive earnings surprise history. Its earnings have outpaced the Zacks Consensus Estimate in three and matched in one of the trailing four quarters, the average beat being 8.5%.
Strong Leverage: M&T Bank’sdebt/equity ratio is 0.13 versus the industry’s average of 0.75. This shows that it uses relatively less debt to finance its operations. Thus, the company will be financially stable, even in adverse economic conditions.
Net Interest Income (NII) Growth: M&T Bank managed to register solid quarterly results even during the financial crisis. NII witnessed a compound annual growth rate (CAGR) of 5.1% over the seven years (2015-2021) with the rise continuing in the first half of 2022 on higher interest rates.
The company operates as a solid and sustainable regional bank franchise, with a footprint spanning six Mid-Atlantic States as well as DC. This should allow it to continue generating a decent level of interest income in the upcoming quarters, with a gradual improvement in the lending scenario and rising interest rates.
Inorganic Growth: Given its robust liquidity position, M&T Bank is well-positioned to grow via acquisitions. In April 2022, M&T Bank completed the acquisition of People's United for $8.3 billion. It expects to realize cost savings of $330 million by early 2023, with the deal to be accretive to earnings. Further, the acquisition of People’s United increased M&T Bank’s loans by $36 billion and deposits by $53 billion.
Other Stocks Worth Considering
A couple of other top-ranked banks amid the current market backdrop are Associated Banc-Corp (ASB - Free Report) and Bank of Hawaii (BOH - Free Report) . ASB currently sports a Zacks Rank of 1 and BOH carries a Zacks Rank of 2.
Associated Banc-Corp’s Zacks Consensus Estimate for 2022 earnings has moved marginally upward over the past 30 days. In the past three months, ASB’s shares have gained 17.2%.
BOH’ Zacks Consensus Estimate for 2022 earnings has been revised marginally upward over the past week. BOH’s shares have gained 5.4% in the past three months.
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4 Reasons Why You Should Grab M&T Bank's (MTB) Shares Now
M&T Bank Corporation (MTB - Free Report) is well-positioned for top-line growth, supported by its leading banking franchise in the Northeast, the rise in loan balances and inorganic growth efforts. The bank is expected to keep enhancing shareholder value through efficient capital deployment activities, which reflect its strong balance sheet and liquidity positions. Hence, it seems to be a wise idea to add the stock to your portfolio now.
Analysts also seem optimistic regarding MTB’s earnings growth potential. The Zacks Consensus Estimate for the company’s current-year earnings has been revised marginally upward over the past week. Thus, MTB currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Looking at its price performance, shares of the company have gained 19.8% in the past year against the industry’s decline of 27.1%.
Image Source: Zacks Investment Research
Some other factors, which make M&T Bankstock an attractive investment option at present, are mentioned below.
Earnings per share (EPS) Growth: The company recorded EPS growth, seeing a 20-year compound annual growth rate (CAGR) of 4.6%.
CBSH also has an impressive earnings surprise history. Its earnings have outpaced the Zacks Consensus Estimate in three and matched in one of the trailing four quarters, the average beat being 8.5%.
Strong Leverage: M&T Bank’sdebt/equity ratio is 0.13 versus the industry’s average of 0.75. This shows that it uses relatively less debt to finance its operations. Thus, the company will be financially stable, even in adverse economic conditions.
Net Interest Income (NII) Growth: M&T Bank managed to register solid quarterly results even during the financial crisis. NII witnessed a compound annual growth rate (CAGR) of 5.1% over the seven years (2015-2021) with the rise continuing in the first half of 2022 on higher interest rates.
The company operates as a solid and sustainable regional bank franchise, with a footprint spanning six Mid-Atlantic States as well as DC. This should allow it to continue generating a decent level of interest income in the upcoming quarters, with a gradual improvement in the lending scenario and rising interest rates.
Inorganic Growth: Given its robust liquidity position, M&T Bank is well-positioned to grow via acquisitions. In April 2022, M&T Bank completed the acquisition of People's United for $8.3 billion. It expects to realize cost savings of $330 million by early 2023, with the deal to be accretive to earnings. Further, the acquisition of People’s United increased M&T Bank’s loans by $36 billion and deposits by $53 billion.
Other Stocks Worth Considering
A couple of other top-ranked banks amid the current market backdrop are Associated Banc-Corp (ASB - Free Report) and Bank of Hawaii (BOH - Free Report) . ASB currently sports a Zacks Rank of 1 and BOH carries a Zacks Rank of 2.
Associated Banc-Corp’s Zacks Consensus Estimate for 2022 earnings has moved marginally upward over the past 30 days. In the past three months, ASB’s shares have gained 17.2%.
BOH’ Zacks Consensus Estimate for 2022 earnings has been revised marginally upward over the past week. BOH’s shares have gained 5.4% in the past three months.