An improving operating backdrop, a rising rate environment and expectations of lesser regulations, along with the strengthening of domestic economy, should continue to support banking stocks. Keeping this in mind, today we have chosen FB Financial Corporation (FBK - Free Report) for you to consider.
This Nashville, TN-based company not only beat estimates in the second quarter, but has also been witnessing upward trend in earnings estimate revisions.
Over the last 60 days, the Zacks Consensus Estimate for 2017 has increased 3.2%. The stock has surged 67.4% in a year, outperforming the industry’s rally of 18.8%. The momentum is likely to continue for this Zacks Rank #2 (Buy) company.
Here are some factors that might keep the momentum alive for FB Financial stock:
Revenue Strength: FB Financial’s revenues witnessed a CAGR of 38% over the last three years (2014-2016). The company’s projected sales growth (F1/F0) is 7.6% against a muted performance for the industry.
Strong Leverage: FB Financial’s debt/equity ratio is valued at 0.09 compared with the industry average of 0.55, indicating a relatively lower debt burden. It highlights the company’s financial strength to brave an unstable economic environment.
Superior Return on Equity (ROE): FB Financial has an ROE of 14.8%, significantly better than the industry average of 8.5%. This shows that the company reinvests its cash more efficiently.
Other Stocks Worth a Look
Some other stocks worth considering in the same industry are First Internet Bancorp (INBK - Free Report) , First Connecticut Bancorp, Inc. (FBNK - Free Report) and CNB Financial Corporation (CCNE - Free Report) .
First Internet Bancorp has witnessed an upward earnings estimate revision of 8.6% for the current year, over 60 days. Also, in a year’s time, its share price has jumped 34.2%. The company currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
First Connecticut has a Zacks Rank #2. For the current year, its Zacks Consensus Estimate has been revised 2.3% upward, in the past 60 days. Also, its share price has increased 40.1% in the last 12 months.
CNB Financial also carries a Zacks Rank #2. The company has witnessed an upward earnings estimate revision of 6.7% for the current year, in the last 60 days. Also, its share price has seen a 23.3% rise in a year.
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