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Here's Why You Should Buy CenterState Banks (CSFL) Now

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Shares of CenterState Banks, Inc. have surged 3.4% over the last three months, outpacing the negative 4.5% growth for the Zacks categorized Banks - Southeast industry. The majority of this rally has been driven by the recent boost in investors’ sentiment based on an improving interest rate scenario along with Trump’s promises of lesser regulations and lower tax rates.


Coming to earnings estimates, the same for CenterState‘s current year remained stable over the last 60 days. The stock currently carries a Zacks Rank #2 (Buy).

Let us look at some factors that make CenterState Banks an attractive investment option now.

Key Factors Driving the Stock

Revenue Growth: CenterState Banks’ revenues grew at a 4-year CAGR (2012-2016) of 13.2%. Moreover, revenues are anticipated to grow 20.25% in 2017, higher than the industry average of 2.89%.

Earnings per Share (EPS) Growth: In the last 3–5 years, the company witnessed EPS growth of 3.56%. Moreover, earnings are projected to grow 28.43% in 2017 compared with 9.01% for the industry.

Comfortable Leverage Position: The company’s debt/equity ratio is 0.05 compared with the industry average of 0.31. This indicates a lower debt burden relative to the industry and highlights its financial stability.

Better Return on Equity (ROE): The current ROE is 9.36% compared with the industry average of 8.24%. This reflects the company’s strength in terms of efficiency in equity financing.

Momentum Looks Reasonable:  The company has a Momentum Score of ‘B’. The Momentum Style Score indicates when the timing is favorable to enter a stock. Our research shows that stocks with a Style Score of ‘A’ or ‘B,’ when combined with a Zacks Rank #1 (Strong Buy)  or #2, offer the best upside potential.

Other Stocks to Consider

Some stocks worth considering from the same space are Access National Corp. , American National Bankshares Inc. (AMNB - Free Report) and Capstar Financial Holdings, Inc. (CSTR - Free Report) . All these stocks carry the same rank as CenterState Banks. You can see the complete list of today’s Zacks #1 Rank stocks here.

Access National witnessed upward earnings estimate revision of 0.6% over the past 60 days. Also, its share price increased 52.44% in the past one year.

American National Bankshares’ earnings estimates moved north by roughly 1.5% over the past 60 days and its shares gained 46.37% over a period of one year.

Capstar Financial Holdings witnessed an upward earnings estimate revision of 1.1% over the past 60 days. Its share price rose 19.5% in the last one year.  

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