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U.S. Bancorp (USB) Displays Robust Prospects: Time to Buy?
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The recent Fed rate hike and the impending implementation of President Donald Trump’s measures have led banking stocks to rally. U.S. Bancorp (USB - Free Report) is one such stock. Though the company exhibits a diversified product mix, capital strength and a strong retail franchise, escalating costs remain a concern.
Given the improving interest rate environment, including the current shape of the yield curve, management projects net interest margin (NIM) to expand modestly in first-quarter 2017.
Organic growth and strategic bank acquisitions aided the company to surge 33.2%, compared with 41.7% growth for the Zacks categorized Banks-Major Regional industry.
Moreover, the company’s earnings estimates revised 2.4% upward, for the current year, over the last 60 days. As a result, the stock carries a Zacks Rank #2 (Buy).
U.S. Bancorp has been experiencing solid loan and deposit growth in the past few years, courtesy of the company's constant efforts to strengthen existing ties and gaining customers as well as market share. Notably, the company’s average deposits and loans reflected a 5-year CAGR of 7.3% and 5.6%, respectively, in 2016.
The company has consistently enhanced its shareholders’ value, with steady capital deployment activities. Notably, following the Federal Reserve’s approval to the capital actions in Jun 2016, U.S. Bancorp’s board of directors approved a four-quarter authorization to repurchase up to $2.6 billion of its outstanding stock, starting Jul 2016. Also, as part of its capital plan, the company raised its quarterly dividend by 9.8% to 28 cents per share in Sep 2016. Additionally, U.S. Bancorp expects to remain in its targeted payout ratio of 60–80%.
Overall, U.S. Bancorp has made a number of strategic bank acquisitions in the past years. The acquisitions have opened up new markets for the company as well as fortified the existing markets. These acquisitions, combined with the ongoing investments in innovative product enhancements, services and people, have strengthened the company’s balance sheet and fee-based businesses besides increasing market share.
Stocks to Consider
PrivateBancorp, Inc. has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged over 28% over the past six months. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Associated Banc-Corp (ASB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 30.3% over the last six months. It currently carries a Zacks Rank #2.
Enterprise Financial Services Corp (EFSC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 42%. It carries a Zacks Rank #2.
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U.S. Bancorp (USB) Displays Robust Prospects: Time to Buy?
The recent Fed rate hike and the impending implementation of President Donald Trump’s measures have led banking stocks to rally. U.S. Bancorp (USB - Free Report) is one such stock. Though the company exhibits a diversified product mix, capital strength and a strong retail franchise, escalating costs remain a concern.
Given the improving interest rate environment, including the current shape of the yield curve, management projects net interest margin (NIM) to expand modestly in first-quarter 2017.
Organic growth and strategic bank acquisitions aided the company to surge 33.2%, compared with 41.7% growth for the Zacks categorized Banks-Major Regional industry.
Moreover, the company’s earnings estimates revised 2.4% upward, for the current year, over the last 60 days. As a result, the stock carries a Zacks Rank #2 (Buy).
U.S. Bancorp has been experiencing solid loan and deposit growth in the past few years, courtesy of the company's constant efforts to strengthen existing ties and gaining customers as well as market share. Notably, the company’s average deposits and loans reflected a 5-year CAGR of 7.3% and 5.6%, respectively, in 2016.
The company has consistently enhanced its shareholders’ value, with steady capital deployment activities. Notably, following the Federal Reserve’s approval to the capital actions in Jun 2016, U.S. Bancorp’s board of directors approved a four-quarter authorization to repurchase up to $2.6 billion of its outstanding stock, starting Jul 2016. Also, as part of its capital plan, the company raised its quarterly dividend by 9.8% to 28 cents per share in Sep 2016. Additionally, U.S. Bancorp expects to remain in its targeted payout ratio of 60–80%.
Overall, U.S. Bancorp has made a number of strategic bank acquisitions in the past years. The acquisitions have opened up new markets for the company as well as fortified the existing markets. These acquisitions, combined with the ongoing investments in innovative product enhancements, services and people, have strengthened the company’s balance sheet and fee-based businesses besides increasing market share.
Stocks to Consider
PrivateBancorp, Inc. has been witnessing upward estimate revisions for the last 60 days. Further, the stock surged over 28% over the past six months. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Associated Banc-Corp (ASB - Free Report) has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 30.3% over the last six months. It currently carries a Zacks Rank #2.
Enterprise Financial Services Corp (EFSC - Free Report) has been witnessing upward estimate revisions for the last 60 days. Over the last six months, the company’s share price has been up more than 42%. It carries a Zacks Rank #2.
5 Trades Could Profit "Big-League" from Trump Policies
If the stocks above spark your interest, wait until you look into companies primed to make substantial gains from Washington's changing course.
Today Zacks reveals 5 tickers that could benefit from new trends like streamlined drug approvals, tariffs, lower taxes, higher interest rates, and spending surges in defense and infrastructure. See these buy recommendations now >>