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4 Reasons to Buy Community Bank System Stock Right Now
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Since the Presidential elections, banking stocks have been witnessing a bullish trend. The expectations of a Fed rate hike and continued improvement in the domestic economy along with promises made by the Trump-regime (lower tax rates, lesser regulations and increased infrastructure spending), are the primary reasons for investors’ optimism.
Hence, it’s the right time to add a few banking stocks to your portfolio. Today, we bring one such stock – Community Bank System, Inc. (CBU - Free Report) – that continues to depict strong fundamentals and improving prospects.
Further, this Zacks Rank #1 (Strong Buy) stock has risen over 48.7% year to date compared with 28.3% gain for the Zacks categorized Northeast Banks industry. This solid price performance is backed by upward estimate revisions for 2016 and 2017.
Why an Attractive Pick?
Revenue Strength: Community Bank System’s net revenue has risen at a compounded annual growth rate (“CAGR”) of 5.6% over the last five years (2011–2015). The sturdy top-line increase was backed by strong loan and deposit growth.
Further, the company has inked deals to acquire Northeast Retirement Services, Inc. and Merchants Bancshares, Inc. , which are anticipated to be accretive to top-line growth. Therefore, the company’s projected sales growth of 16.5% for 2016 and 13.8% for 2017 ensures continuation of the upward revenue trend.
Earnings per Share Growth: While Community Bank System has witnessed a marginal decline in earnings per share over the last three to five years, we believe subsequent to the closure of the announced deal, earnings should improve. Notably, earnings are estimated to grow at the rate of 1% for 2016 and 5.9% for 2017.
Superior ROE: Community Bank System’s Return on Equity ratio is 8.83% compared with the industry average of 8.64%. This indicates that the company reinvests more efficiently compared to the industry.
Strong Leverage: The debt-to-equity ratio for Community Bank System is 0.19 compared with the industry average of 0.52. This indicates greater financial stability for the company and lesser risk for shareholders.
Other Stocks Worth a Look
A couple of other stocks worth considering in the financial sector include Farmers Capital Bank Corporation and Carolina Financial Corporation .
Farmers Capital witnessed an upward earnings estimate revision of 8.3% over the past 30 days. Also, its share price is up 32.8% year to date. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carolina Financial also flaunts a Zacks Rank #1 and has witnessed an upward earnings estimate revision of 12.9% over the past 30 days. Moreover, its share price is up over 56% year to date.
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4 Reasons to Buy Community Bank System Stock Right Now
Since the Presidential elections, banking stocks have been witnessing a bullish trend. The expectations of a Fed rate hike and continued improvement in the domestic economy along with promises made by the Trump-regime (lower tax rates, lesser regulations and increased infrastructure spending), are the primary reasons for investors’ optimism.
Hence, it’s the right time to add a few banking stocks to your portfolio. Today, we bring one such stock – Community Bank System, Inc. (CBU - Free Report) – that continues to depict strong fundamentals and improving prospects.
Further, this Zacks Rank #1 (Strong Buy) stock has risen over 48.7% year to date compared with 28.3% gain for the Zacks categorized Northeast Banks industry. This solid price performance is backed by upward estimate revisions for 2016 and 2017.
Why an Attractive Pick?
Revenue Strength: Community Bank System’s net revenue has risen at a compounded annual growth rate (“CAGR”) of 5.6% over the last five years (2011–2015). The sturdy top-line increase was backed by strong loan and deposit growth.
Further, the company has inked deals to acquire Northeast Retirement Services, Inc. and Merchants Bancshares, Inc. , which are anticipated to be accretive to top-line growth. Therefore, the company’s projected sales growth of 16.5% for 2016 and 13.8% for 2017 ensures continuation of the upward revenue trend.
Earnings per Share Growth: While Community Bank System has witnessed a marginal decline in earnings per share over the last three to five years, we believe subsequent to the closure of the announced deal, earnings should improve. Notably, earnings are estimated to grow at the rate of 1% for 2016 and 5.9% for 2017.
Superior ROE: Community Bank System’s Return on Equity ratio is 8.83% compared with the industry average of 8.64%. This indicates that the company reinvests more efficiently compared to the industry.
Strong Leverage: The debt-to-equity ratio for Community Bank System is 0.19 compared with the industry average of 0.52. This indicates greater financial stability for the company and lesser risk for shareholders.
Other Stocks Worth a Look
A couple of other stocks worth considering in the financial sector include Farmers Capital Bank Corporation and Carolina Financial Corporation .
Farmers Capital witnessed an upward earnings estimate revision of 8.3% over the past 30 days. Also, its share price is up 32.8% year to date. It currently boasts a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Carolina Financial also flaunts a Zacks Rank #1 and has witnessed an upward earnings estimate revision of 12.9% over the past 30 days. Moreover, its share price is up over 56% year to date.
Zacks’ Best Private Investment Ideas
In addition to the recommendations that are available to the public on our website, how would you like to follow all Zacks' private buys and sells in real time?
Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Starting today, for the next month, you can have unrestricted access. Click here for Zacks' private trades >>