It seems to be a wise decision to add TCF Financial Corporation (TCF - Free Report) stock to your portfolio now, given the company’s efforts to enhance digital offerings as per the current demand of customers. Also, its organic growth, aided by rising loans and deposits, as well as higher interest rates, bode well for the future.
Further, analysts are bullish on the stock. The Zacks Consensus Estimate for the company’s earnings has been revised slightly upward over the past 30 days for 2018. As a result, the stock currently carries a Zacks Rank #2 (Buy).
Over the past two years, the stock has lost around 8% compared with the 16.3% decline of the industry.
With $22.9 billion in assets as of Sep 30, 2018, TCF Financial has a number of other aspects that make it an attractive investment option.
5 Reasons Why TCF Financial is a Must Buy
Earnings Strength: TCF Financial witnessed historical (3-5 years) earnings per share growth of 11.64% compared with the 9.95% growth recorded by the industry. In addition, the company’s estimated long-term EPS growth rate of 11.7% promises rewards for investors. Further, the company recorded a positive earnings surprise of 2.01% in the trailing four quarters.
Revenue Growth: TCF Financial continues to make steady progress toward improving its top line, with sales recording five-year compounded annual growth rate (CAGR) of around 3.7% during 2013-2017. Furthermore, the company’s projected sales growth of nearly 6% for 2018 indicates constant upward momentum in revenues.
Leverage: TCF Financial’s debt/equity ratio is pegged at 0.50 against the S&P 500 average of 0.66, reflecting lower debt burden compared with the industry. It highlights the company’s sound financial flexibility.
Superior Return on Equity (ROE): TCF Financial’s ROE of 12.89%, as compared with the industry average of 10.52%, highlights the company’s commendable position over its peers.
Stock Looks Undervalued: The stock currently has a Value Score of B. The Value Score condenses all valuation metrics into one actionable score which helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Other Stocks to Consider
Greenhill & Co., Inc. (GHL - Free Report) has been witnessing upward estimate revisions for the past 90 days. Also, the company’s shares have climbed nearly 13.7% in the past year. It sports a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Popular, Inc. (BPOP - Free Report) has been witnessing upward estimate revisions for the past 90 days. Additionally, the stock has jumped more than 25% in the past year. It carries a Zacks Rank #2, currently.
Amalgamated Bank (AMAL - Free Report) has been witnessing upward estimate revisions for the past 90 days. Further, the stock has increased 1.2% in the past year. It currently carries a Zacks Rank of 2.
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