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The Zacks Analyst Blog Highlights: Associated Banc-Corp, Hancock Holding, Heartland Financial, Synovus Financial and Zions
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For Immediate Release
Chicago, IL – January 08, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Associated Banc-Corp (ASB - Free Report) , Hancock Holding Company , Heartland Financial USA, Inc. (HTLF - Free Report) , Synovus Financial Corp. (SNV - Free Report) and Zions Bancorporation (ZION - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Markets at Record Highs: 5 Stocks to Bet On
It has only been a handful of days into 2018 and the markets are already touching record highs. It looks like the rally will continue for some time.
The Dow Jones Industrial index crossed the 25,000 level for the first time yesterday, while other two major indexes — the S&P 500 and Nasdaq also closed at all-time highs. The primary driving factor is the strong domestic economic data including better-than-expected ADP private sector payroll reading for December 2017, and robust manufacturing and services sector data.
Also, the FOMC Minutes from last month revealed discussions that the new tax act (which was not even finalized at the time of the meeting) will aid GDP given the increase in consumer spending, higher business investments and a steady decline in unemployment rate.
The tax act is expected to result in huge savings and cash repatriation for the companies. But only a few sectors/industries will continue to gain over the longer term, banks being one of them. (Read more: Christmas Comes Early for Bank Stocks: Tax Reform Bill Passed)
Apart from this, the Fed has indicated three more rate hikes this year. This alone is sufficient to improve banks’ financial performance. But anticipated higher inflation driven by tax cut stimulus may lead the central bank to raise the interest rate at a faster pace, as economic growth improves further. Higher rates help banks in expanding their net interest margins, thus driving revenue growth.
All these indicate a stronger economy this year. With banks’ financials directly linked to the health of the nation, they stand out to be clear winners.
Further, reduction in stringent regulations might be implemented soon as part of President Donald Trump’s election promise. While no time frame has been outlined for the execution, the announcement of a bipartisan agreement has helped investors regain confidence. This will help banks in reducing regulatory compliance costs and will likely to lead to a wave of M&As for the banking industry.
Picking the Winning Banking Stocks
The banking industry, as a whole, is likely to gain from the favorable factors. So it is not an easy task to find the potential winners.
To further cut short the list, we selected those stocks that have witnessed positive estimate revisions for 2018 over the past four weeks. Also, the stocks have a VGM Score of A or B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are the five stocks that meet the criteria:
Associated Banc-Corp, based in Green Bay, WI, has a Zacks Rank #2 and VGM Score of B. With a market cap of $3.8 billion, the company’s Zacks Consensus Estimate for earnings recorded nearly 1% upward revision for 2018 over the past four weeks.
Hancock Holding Company, headquartered in Gulfport, MS, has a Zacks Rank #2 and VGM Score of B. The bank’s earnings estimate for 2018 moved 3% upward over the last 30 days. The company has a market cap of $4.1 billion.
With a market cap of $1.5 billion, Heartland Financial USA, Inc. has a Zacks Rank #2 and VGM Score of B. This Dubuque, IA-based stock has witnessed 2.6% upward earnings estimate revision for 2018 over the last 30 days.
Synovus Financial Corp., based in Columbus, GA, has a Zacks Rank #2 and VGM Score of B. With a market cap of $5.7 billion, the company’s Zacks Consensus Estimate for earnings recorded 3.1% upward revision for 2018 over the past four weeks.
Zions Bancorporation, headquartered in Salt Lake City, UT, has a Zacks Rank #2 and VGM Score of B. The bank’s earnings estimate for 2018 moved 2.2% upward over the last 30 days. The company has a market cap of $9.8 billion.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.
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The Zacks Analyst Blog Highlights: Associated Banc-Corp, Hancock Holding, Heartland Financial, Synovus Financial and Zions
For Immediate Release
Chicago, IL – January 08, 2018 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include Associated Banc-Corp (ASB - Free Report) , Hancock Holding Company , Heartland Financial USA, Inc. (HTLF - Free Report) , Synovus Financial Corp. (SNV - Free Report) and Zions Bancorporation (ZION - Free Report) .
Here are highlights from Friday’s Analyst Blog:
Markets at Record Highs: 5 Stocks to Bet On
It has only been a handful of days into 2018 and the markets are already touching record highs. It looks like the rally will continue for some time.
The Dow Jones Industrial index crossed the 25,000 level for the first time yesterday, while other two major indexes — the S&P 500 and Nasdaq also closed at all-time highs. The primary driving factor is the strong domestic economic data including better-than-expected ADP private sector payroll reading for December 2017, and robust manufacturing and services sector data.
Also, the FOMC Minutes from last month revealed discussions that the new tax act (which was not even finalized at the time of the meeting) will aid GDP given the increase in consumer spending, higher business investments and a steady decline in unemployment rate.
The tax act is expected to result in huge savings and cash repatriation for the companies. But only a few sectors/industries will continue to gain over the longer term, banks being one of them. (Read more: Christmas Comes Early for Bank Stocks: Tax Reform Bill Passed)
Apart from this, the Fed has indicated three more rate hikes this year. This alone is sufficient to improve banks’ financial performance. But anticipated higher inflation driven by tax cut stimulus may lead the central bank to raise the interest rate at a faster pace, as economic growth improves further. Higher rates help banks in expanding their net interest margins, thus driving revenue growth.
All these indicate a stronger economy this year. With banks’ financials directly linked to the health of the nation, they stand out to be clear winners.
Further, reduction in stringent regulations might be implemented soon as part of President Donald Trump’s election promise. While no time frame has been outlined for the execution, the announcement of a bipartisan agreement has helped investors regain confidence. This will help banks in reducing regulatory compliance costs and will likely to lead to a wave of M&As for the banking industry.
Picking the Winning Banking Stocks
The banking industry, as a whole, is likely to gain from the favorable factors. So it is not an easy task to find the potential winners.
Hence, we have taken the help of the Zacks Stock Screener to shortlist stocks that have market capitalization of more than $1.5 billion and carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
To further cut short the list, we selected those stocks that have witnessed positive estimate revisions for 2018 over the past four weeks. Also, the stocks have a VGM Score of A or B. Our research shows that stocks with a Style Score of A or B when combined with a Zacks Rank #1 or 2 offer the best upside potential.
Here are the five stocks that meet the criteria:
Associated Banc-Corp, based in Green Bay, WI, has a Zacks Rank #2 and VGM Score of B. With a market cap of $3.8 billion, the company’s Zacks Consensus Estimate for earnings recorded nearly 1% upward revision for 2018 over the past four weeks.
Hancock Holding Company, headquartered in Gulfport, MS, has a Zacks Rank #2 and VGM Score of B. The bank’s earnings estimate for 2018 moved 3% upward over the last 30 days. The company has a market cap of $4.1 billion.
With a market cap of $1.5 billion, Heartland Financial USA, Inc. has a Zacks Rank #2 and VGM Score of B. This Dubuque, IA-based stock has witnessed 2.6% upward earnings estimate revision for 2018 over the last 30 days.
Synovus Financial Corp., based in Columbus, GA, has a Zacks Rank #2 and VGM Score of B. With a market cap of $5.7 billion, the company’s Zacks Consensus Estimate for earnings recorded 3.1% upward revision for 2018 over the past four weeks.
Zions Bancorporation, headquartered in Salt Lake City, UT, has a Zacks Rank #2 and VGM Score of B. The bank’s earnings estimate for 2018 moved 2.2% upward over the last 30 days. The company has a market cap of $9.8 billion.
Zacks Editor-in-Chief Goes "All In" on This Stock
Full disclosure, Kevin Matras now has more of his own money in one particular stock than in any other. He believes in its short-term profit potential and also in its prospects to more than double by 2019. Today he reveals and explains his surprising move in a new Special Report.
Download it free >>
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performancefor information about the performance numbers displayed in this press release.