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Why a Solid Surge is Ahead for Itau Unibanco (ITUB) Stock?

ITUB BNS GGAL BMA

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Shares of Brazil-based financial products and services provider Itaú Unibanco Holding S.A.’s (ITUB - Free Report) surged more than 75% so far this year on the NYSE.

Why the Price Rally May Continue

Earnings Strength: Itau Unibanco has projected earnings per share growth of 6.3% for the current year, compared to the industry average of negative 1.3%.

Superior Return on Equity (ROE): The company has an impressive ROE of 17.5%, compared with the industry average of 9.9%. This indicates that the company reinvests more efficiently than its peers.

Revenue Growth: Top-line growth remains a key strength at Itau Unibanco, with estimated growth rate of 15.08% for the current year 2016, compared with stable revenue for the industry.

Stock is Undervalued: The company has a P/E ratio of 10.68x, compared to the industry average of 11.35x.

Upward Estimate Revision: The Zacks Consensus Estimate for the stock has been revised around 17% upward over the past 90 days for the current year. This indicates analysts’ optimism about the company’s earnings performance. Notably, the company has recorded an average positive earnings surprise of 16.08% over the trailing four quarters.

BANCO ITAU -ADR Price, Consensus and EPS Surprise

 

BANCO ITAU -ADR Price, Consensus and EPS Surprise | BANCO ITAU -ADR Quote

Other notable stocks in the same space include Banco Macro S.A. (BMA - Free Report) , Grupo Financiero Galicia S.A. (GGAL - Free Report) and The Bank of Nova Scotia (BNS - Free Report) . All three stocks have delivered average positive earnings surprises over the trailing four quarters.

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BANCO ITAU -ADR (ITUB) - free report >>

BANK OF NOVA SC (BNS) - free report >>

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BANCO MACRO-ADR (BMA) - free report >>