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4 Reasons to Bet on Carolina Financial (CARO) Stock Now
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In an encouraging operating environment, the performance of bank stocks should ideally keep improving. Moreover, renewed optimism over lesser regulations with the recent passage of the Financial Choice Act and rising rate environment position bank stocks well to grow. Keeping these in mind, we bring to you Carolina Financial Corporation , which is a solid pick now based on its strong fundamentals.
Shares of the company have gained 91.1% in the last one year, significantly outperforming the Zacks categorized Banks - Southeast industry’s rally of 44.5%.
Moreover, the stock has been witnessing upward estimate revisions, reflecting analysts’ optimism. In the last 60 days, the Zacks Consensus Estimate for the current year has increased nearly 2.3%. As a result, the stock carries a Zacks Rank #2 (Buy).
Carolina Financial has a number of other aspects that make it an attractive investment option.
Earnings per Share Growth: In the last 3–5 years, Carolina Financial has witnessed EPS growth of 11.6%. The company has an impressive earnings surprise history, having delivered positive surprises in each of the trailing four quarters with an average beat of 12.7%.
Further, the company’s earnings are projected to grow 8.8% and 13.7% in 2017 and 2018, respectively.
Revenue Strength: Carolina Financial’s revenues increased at a CAGR of 5.3% in the last four years (2013–2016). Also, the top line is expected to grow nearly 31.7% in 2017, much higher than the industry average of 2.2%. This indicates its superiority in generating revenues.
Strong Leverage: Carolina Financial’s debt/equity ratio is at 0.20, compared with the industry average of 0.31, indicating lower debt burden relative to the industry. It highlights the financial stability of the company even in an unstable economic environment.
Superior Return on Equity (ROE): Carolina Financial’s ROE is 14.19%, compared with the industry average of 7.95%, reflecting the company’s commendable position over its peers.
Other Stocks to Consider
Some other top-ranked stocks in the finance space are Comerica Incorporated (CMA - Free Report) , Farmers Capital Bank Corporation and Franklin Resources, Inc. (BEN - Free Report) .
Comerica witnessed an upward earnings estimate revision of 8.4% for the current year, in the last 60 days. Its share price increased 69.2% in the last one year. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Farmers Capital carries a Zacks Rank #2. For the current year, in the last 60 days, its Zacks Consensus Estimate has been revised 2.9% upward. The company’s share price increased 54.4% in the last one year.
Franklin Resources also has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 5.9% for the current fiscal year, in the last 60 days. Its share price increased 34.1% in the last one year.
More Stock News: This Is Bigger than the iPhone!
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4 Reasons to Bet on Carolina Financial (CARO) Stock Now
In an encouraging operating environment, the performance of bank stocks should ideally keep improving. Moreover, renewed optimism over lesser regulations with the recent passage of the Financial Choice Act and rising rate environment position bank stocks well to grow. Keeping these in mind, we bring to you Carolina Financial Corporation , which is a solid pick now based on its strong fundamentals.
Shares of the company have gained 91.1% in the last one year, significantly outperforming the Zacks categorized Banks - Southeast industry’s rally of 44.5%.
Moreover, the stock has been witnessing upward estimate revisions, reflecting analysts’ optimism. In the last 60 days, the Zacks Consensus Estimate for the current year has increased nearly 2.3%. As a result, the stock carries a Zacks Rank #2 (Buy).
Carolina Financial has a number of other aspects that make it an attractive investment option.
Earnings per Share Growth: In the last 3–5 years, Carolina Financial has witnessed EPS growth of 11.6%. The company has an impressive earnings surprise history, having delivered positive surprises in each of the trailing four quarters with an average beat of 12.7%.
Further, the company’s earnings are projected to grow 8.8% and 13.7% in 2017 and 2018, respectively.
Revenue Strength: Carolina Financial’s revenues increased at a CAGR of 5.3% in the last four years (2013–2016). Also, the top line is expected to grow nearly 31.7% in 2017, much higher than the industry average of 2.2%. This indicates its superiority in generating revenues.
Strong Leverage: Carolina Financial’s debt/equity ratio is at 0.20, compared with the industry average of 0.31, indicating lower debt burden relative to the industry. It highlights the financial stability of the company even in an unstable economic environment.
Superior Return on Equity (ROE): Carolina Financial’s ROE is 14.19%, compared with the industry average of 7.95%, reflecting the company’s commendable position over its peers.
Other Stocks to Consider
Some other top-ranked stocks in the finance space are Comerica Incorporated (CMA - Free Report) , Farmers Capital Bank Corporation and Franklin Resources, Inc. (BEN - Free Report) .
Comerica witnessed an upward earnings estimate revision of 8.4% for the current year, in the last 60 days. Its share price increased 69.2% in the last one year. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Farmers Capital carries a Zacks Rank #2. For the current year, in the last 60 days, its Zacks Consensus Estimate has been revised 2.9% upward. The company’s share price increased 54.4% in the last one year.
Franklin Resources also has a Zacks Rank #2. The company witnessed an upward earnings estimate revision of 5.9% for the current fiscal year, in the last 60 days. Its share price increased 34.1% in the last one year.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>