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5 Reasons Why Fulton Financial (FULT) is an Attractive Pick Now
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Fulton Financial Corporation (FULT - Free Report) stock is a good investment option right now. Supported by higher interest rates and loan growth, the company’s revenues are anticipated to improve. FULT’s efficient capital deployment activities reflect a solid balance sheet position.
Analysts seem to be optimistic regarding the company’s earnings growth prospects. In the past 60 days, the Zacks Consensus Estimate for FULT’s current-year earnings has moved 1.1% upward. The company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of the company have gained 16.3% over the past six months against a 3.4% decline recorded by the industry.
Image Source: Zacks Investment Research
A few factors that make Fulton Financial stock an attractive pick are mentioned below.
Key Factors to Note
Earnings Strength: Fulton Financial’s earnings witnessed growth of 9% over the last three to five years. The upward momentum will likely persist in the near term. For 2022, the company’s earnings are projected to increase 10.5%. For 2023, earnings are projected to rise 7.1%.
The company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters.
Revenue Growth: The company’s revenues witnessed a compound annual growth rate (CAGR) of 3.3% over the last five years (2017-2021), with the uptrend continuing in the first nine months of 2022. For 2022, the company’s top line is projected to grow 7.8%. For 2023, revenues are expected to increase 11%.
Solid Capital Deployment Actions: Fulton Financial’s capital deployment plans seem impressive, through which it is expected to keep enhancing shareholder value. Recently, the company’s board of directors approved the repurchase of up to $100 million worth of shares starting Jan 1, 2023, with an expiration date of Dec 31, 2023. Also, FULT pays regular quarterly cash dividends. The last dividend hike of 7.1% was announced this April. Moreover, last month, the company announced a special dividend of 6 cents per share.
Strong Leverage: Currently, Fulton Financial has a debt/equity ratio of 0.12. This compares favorably with the industry average of 0.23. Given the relatively low debt/equity ratio than its peers, the company is expected to be financially stable, even in adverse economic conditions.
Favorable Valuation: Fulton Financial stock looks undervalued right now than the broader industry. Its current price/earnings ratio is below the industry average. It has a P/E (F1) ratio of 9.56, slightly lower than the industry average of 9.71.
The Zacks Consensus Estimate for Amerant Bancorp’s 2022 earnings has moved 4.3% upward over the past 60 days. Over the past three months, AMTB’s shares have gained 5%.
The Zacks Consensus Estimate for Mid Penn Bancorp’s 2022 earnings has been revised 7.7% upward in the past 60 days. MPB’s shares have rallied 8.1% in the past three months.
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5 Reasons Why Fulton Financial (FULT) is an Attractive Pick Now
Fulton Financial Corporation (FULT - Free Report) stock is a good investment option right now. Supported by higher interest rates and loan growth, the company’s revenues are anticipated to improve. FULT’s efficient capital deployment activities reflect a solid balance sheet position.
Analysts seem to be optimistic regarding the company’s earnings growth prospects. In the past 60 days, the Zacks Consensus Estimate for FULT’s current-year earnings has moved 1.1% upward. The company currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of the company have gained 16.3% over the past six months against a 3.4% decline recorded by the industry.
Image Source: Zacks Investment Research
A few factors that make Fulton Financial stock an attractive pick are mentioned below.
Key Factors to Note
Earnings Strength: Fulton Financial’s earnings witnessed growth of 9% over the last three to five years. The upward momentum will likely persist in the near term. For 2022, the company’s earnings are projected to increase 10.5%. For 2023, earnings are projected to rise 7.1%.
The company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters.
Revenue Growth: The company’s revenues witnessed a compound annual growth rate (CAGR) of 3.3% over the last five years (2017-2021), with the uptrend continuing in the first nine months of 2022. For 2022, the company’s top line is projected to grow 7.8%. For 2023, revenues are expected to increase 11%.
Solid Capital Deployment Actions: Fulton Financial’s capital deployment plans seem impressive, through which it is expected to keep enhancing shareholder value. Recently, the company’s board of directors approved the repurchase of up to $100 million worth of shares starting Jan 1, 2023, with an expiration date of Dec 31, 2023. Also, FULT pays regular quarterly cash dividends. The last dividend hike of 7.1% was announced this April. Moreover, last month, the company announced a special dividend of 6 cents per share.
Strong Leverage: Currently, Fulton Financial has a debt/equity ratio of 0.12. This compares favorably with the industry average of 0.23. Given the relatively low debt/equity ratio than its peers, the company is expected to be financially stable, even in adverse economic conditions.
Favorable Valuation: Fulton Financial stock looks undervalued right now than the broader industry. Its current price/earnings ratio is below the industry average. It has a P/E (F1) ratio of 9.56, slightly lower than the industry average of 9.71.
Other Stocks Worth Considering
A couple of other top-ranked stocks from the finance space are Amerant Bancorp Inc. (AMTB - Free Report) and Mid Penn Bancorp, Inc. (MPB - Free Report) . At present, AMTB and MPB sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Amerant Bancorp’s 2022 earnings has moved 4.3% upward over the past 60 days. Over the past three months, AMTB’s shares have gained 5%.
The Zacks Consensus Estimate for Mid Penn Bancorp’s 2022 earnings has been revised 7.7% upward in the past 60 days. MPB’s shares have rallied 8.1% in the past three months.