We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
5 Reasons to Add Flagstar Bancorp (FBC) to Your Portfolio
Read MoreHide Full Article
A strong balance sheet position and improving credit quality make Flagstar Bancorp an attractive pick now. Further, the bank’s cost-control initiatives are impressive.
Given the strong fundamentals, shares of Flagstar Bancorp have gained 35.3% year to date, as against the industry’s decline of 1.9%.
The Zacks Consensus Estimate for its current-year earnings has remained stable, over the last 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Factors That Make Flagstar Bancorp an Attractive Pick
Impressive Balance Sheet Growth:The company’s loans and deposits have witnessed a compounded annual growth rate (CAGR) of 12.6% and 12.7%, respectively, over a four-year period (ended 2016). This makes the company well poised for opportunistic acquisitions in the future.
Prudent Expense Management: The Troy, MI-based lender has reduced its expenses at a CAGR of 15.2% over the last four years (ended 2016). Such cost management initiatives are likely to continue supporting its bottom-line growth.
Improving Credit Quality: Flagstar Bancorp’s credit quality has improved significantly over the years. In 2016, its non-performing assets declined nearly 70% from the 2013 level. Also, it recorded benefit for loan losses of $15 million in 2016 against an expense of $70 million in 2013.
Superior Return on Equity: The company has a return on equity of 9.77% compared with the industry average of 7.02%. This reflects the company’s superiority in utilizing shareholders’ funds.
Improved Efficiency: Flagstar Bancorp reported efficiency ratio of 69.2% in 2016 compared with 109.4% in 2013. It should be noted that a decline in this ratio indicates improvement in profitability.
First Internet Bancorp’s Zacks Consensus Estimate for current-year earnings has been revised slightly upward in the last 60 days. The company’s share price has risen almost 43%, over the past six months.
First Commonwealth Financial’s current-year earnings estimates have been revised 2.5% upward over the last 60 days. Also, its shares have gained 15% over the past six months.
Eagle Bancorp’s Zacks Consensus Estimate for current-year earnings has moved 2.5% up over the last 60 days. Over the past six months, its share price has rallied 13.9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
5 Reasons to Add Flagstar Bancorp (FBC) to Your Portfolio
A strong balance sheet position and improving credit quality make Flagstar Bancorp an attractive pick now. Further, the bank’s cost-control initiatives are impressive.
Given the strong fundamentals, shares of Flagstar Bancorp have gained 35.3% year to date, as against the industry’s decline of 1.9%.
The Zacks Consensus Estimate for its current-year earnings has remained stable, over the last 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Factors That Make Flagstar Bancorp an Attractive Pick
Impressive Balance Sheet Growth: The company’s loans and deposits have witnessed a compounded annual growth rate (CAGR) of 12.6% and 12.7%, respectively, over a four-year period (ended 2016). This makes the company well poised for opportunistic acquisitions in the future.
Prudent Expense Management: The Troy, MI-based lender has reduced its expenses at a CAGR of 15.2% over the last four years (ended 2016). Such cost management initiatives are likely to continue supporting its bottom-line growth.
Improving Credit Quality: Flagstar Bancorp’s credit quality has improved significantly over the years. In 2016, its non-performing assets declined nearly 70% from the 2013 level. Also, it recorded benefit for loan losses of $15 million in 2016 against an expense of $70 million in 2013.
Superior Return on Equity: The company has a return on equity of 9.77% compared with the industry average of 7.02%. This reflects the company’s superiority in utilizing shareholders’ funds.
Improved Efficiency: Flagstar Bancorp reported efficiency ratio of 69.2% in 2016 compared with 109.4% in 2013. It should be noted that a decline in this ratio indicates improvement in profitability.
Other Stocks to Consider
Some other banks worth considering are First Internet Bancorp (INBK - Free Report) , First Commonwealth Financial Corporation (FCF - Free Report) and Eagle Bancorp (EGBN - 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.
First Internet Bancorp’s Zacks Consensus Estimate for current-year earnings has been revised slightly upward in the last 60 days. The company’s share price has risen almost 43%, over the past six months.
First Commonwealth Financial’s current-year earnings estimates have been revised 2.5% upward over the last 60 days. Also, its shares have gained 15% over the past six months.
Eagle Bancorp’s Zacks Consensus Estimate for current-year earnings has moved 2.5% up over the last 60 days. Over the past six months, its share price has rallied 13.9%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>