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6 Reasons That Make BancorpSouth (BXS) a Solid Pick Now
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BancorpSouth possesses sound organic growth strategies. Moreover, the bank’s focus on capital deployment is a tailwind. Also, its earnings growth prospects and a solid liquidity position should drive its shares higher.
BancorpSouth’s shares have gained 5% over the last six months, outperforming the industry’s rally of 2.6%.
The company’s Zacks Consensus Estimate for current-year earnings has remained stable over the last 30 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Key Driving Factors
Earnings Strength: Over the past three to five years, BancorpSouth witnessed earnings per share (EPS) growth of 16% compared with 12.1% for the industry. The company also recorded an average positive earnings surprise of 3.31% over the trailing four quarters.
Also, the company’s long-term (three to five years) estimated EPS growth rate of 10.7% compares with 10.5% for the industry.
Revenue Growth: The company continues to make steady progress toward improving its top line. Its revenues recording three-year (ended 2016) compounded annual growth rate (CAGR) of around 2.9%. Further, its projected revenue growth (F1/F0) of 3.23% (as against the industry average of about nearly 1%) indicates constant upward momentum in revenues.
Prudent Expense Management: BancorpSouth’s non-interest expenses declined at a five-year CAGR of around 1% during 2012-2016. The company’s expenses are expected to continue declining as it remains focused on reducing headcounts.
Leverage: BancorpSouth’s debt/equity ratio stands at 0.14 compared with the industry’s average of 0.31, reflecting lower debt burden compared with the industry. It highlights the company’s sound financial flexibility.
Steady Capital Deployment: BancorpSouth’s ability to generate positive cash flows and enhance shareholder value through regular dividend payments as well as share repurchases is commendable. Notably, in July 2017, the company raised its quarterly cash dividend by 12%. Further, it has a share repurchase program in place, under which it can of up to 7 million shares through December 2017.
Superior Return on Equity (ROE): With a ROE of 8.77% compared with the industry average of 8.19%, the company appears to reinvest its cash more efficiently.
M&T Bank’s current-year earnings estimate have been revised slightly upward over the past 60 days.
BOK Financial's Zacks Consensus Estimate for earnings moved about 1% upward over the past 60 days, for the current year.
PNC Financial’s current-year earnings estimates have been revised nearly 1% upward, over the past 60 days.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
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6 Reasons That Make BancorpSouth (BXS) a Solid Pick Now
BancorpSouth possesses sound organic growth strategies. Moreover, the bank’s focus on capital deployment is a tailwind. Also, its earnings growth prospects and a solid liquidity position should drive its shares higher.
BancorpSouth’s shares have gained 5% over the last six months, outperforming the industry’s rally of 2.6%.
The company’s Zacks Consensus Estimate for current-year earnings has remained stable over the last 30 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Key Driving Factors
Earnings Strength: Over the past three to five years, BancorpSouth witnessed earnings per share (EPS) growth of 16% compared with 12.1% for the industry. The company also recorded an average positive earnings surprise of 3.31% over the trailing four quarters.
Also, the company’s long-term (three to five years) estimated EPS growth rate of 10.7% compares with 10.5% for the industry.
Revenue Growth: The company continues to make steady progress toward improving its top line. Its revenues recording three-year (ended 2016) compounded annual growth rate (CAGR) of around 2.9%. Further, its projected revenue growth (F1/F0) of 3.23% (as against the industry average of about nearly 1%) indicates constant upward momentum in revenues.
Prudent Expense Management: BancorpSouth’s non-interest expenses declined at a five-year CAGR of around 1% during 2012-2016. The company’s expenses are expected to continue declining as it remains focused on reducing headcounts.
Leverage: BancorpSouth’s debt/equity ratio stands at 0.14 compared with the industry’s average of 0.31, reflecting lower debt burden compared with the industry. It highlights the company’s sound financial flexibility.
Steady Capital Deployment: BancorpSouth’s ability to generate positive cash flows and enhance shareholder value through regular dividend payments as well as share repurchases is commendable. Notably, in July 2017, the company raised its quarterly cash dividend by 12%. Further, it has a share repurchase program in place, under which it can of up to 7 million shares through December 2017.
Superior Return on Equity (ROE): With a ROE of 8.77% compared with the industry average of 8.19%, the company appears to reinvest its cash more efficiently.
Other Stocks to Consider
Some of the other financial stocks worth considering include M&T Bank Corporation (MTB - Free Report) , BOK Financial Corporation (BOKF - Free Report) and PNC Financial Services Group, Inc. (PNC - Free Report) . All these stocks carry a Zacks Rank of 2.You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here
M&T Bank’s current-year earnings estimate have been revised slightly upward over the past 60 days.
BOK Financial's Zacks Consensus Estimate for earnings moved about 1% upward over the past 60 days, for the current year.
PNC Financial’s current-year earnings estimates have been revised nearly 1% upward, over the past 60 days.
Can Hackers Put Money INTO Your Portfolio?
Earlier this month, credit bureau Equifax announced a massive data breach affecting 2 out of every 3 Americans. The cybersecurity industry is expanding quickly in response to this and similar events. But some stocks are better investments than others.
Zacks has just released Cybersecurity! An Investor’s Guide to help Zacks.com readers make the most of the $170 billion per year investment opportunity created by hackers and other threats. It reveals 4 stocks worth looking into right away.
Download the new report now>>