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4 Reasons to Buy Old Second Bancorp (OSBC) Stock Right Now

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Performance of banks in first-quarter 2019 was quite impressive. Loan growth, rising fee income, controlled expenses and rise in interest rates supporting margins boosted investors’ confidence in banking stocks. Therefore, some of these stocks can be profitable additions to your portfolio, supported by robust fundamentals and encouraging long-term prospects.

Thus, this is the right time to add a few banking stocks to your portfolio. Today, we bring one such stock — Old Second Bancorp, Inc. (OSBC - Free Report) — that continues to depict solid fundamentals and improving prospects. This bank appears to be a solid bet right now owing to its sound organic growth strategies.

Further, the current-year Zacks Consensus Estimate for this Zacks Rank #2 (Buy) stock has remained unrevised, over the past 60 days.
 

 

Notably, Old Second Bancorp has a number of other aspects that make it an attractive investment option.

Why Old Second Bancorp is a Must Buy

Strong Organic Growth: Old Second Bancorp’s revenues witnessed 12.7% compounded annual growth rate (CAGR) over the last four years, ending 2018. The company’s projected sales growth (F1/F0) of 6.9% highlights continued upward momentum in revenues.

Earnings per Share Strength: Old Second Bancorp witnessed earnings growth of 34% in the last three-five years. This earnings momentum is likely to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate (F1/F0) of 12.5%.

Also, the company’s long-term (three-five years) estimated EPS growth rate of 7% promises rewards for investors over the long run. Further, it recorded an average positive earnings surprise of 5.33%, over the trailing four quarters.

Superior Return on Equity (ROE): Old Second Bancorp’s ROE of 15.76%, compared with the industry average of 10.7%, 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 that 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 (Strong Buy) or 2, offer the best upside potential.

Other Stocks to Consider

First Business Financial Services, Inc. (FBIZ - Free Report) , currently flaunting a Zacks Rank #1 (Strong Buy), has been witnessing upward estimate revisions, for the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Franklin Resources, Inc. (BEN - Free Report) has been witnessing upward estimate revisions, for the past 60 days. At present, it sports a Zacks Rank of 1.

1st Source Corporation (SRCE - Free Report) has been witnessing upward estimate revisions for the past 60 days. It currently carries a Zacks Rank #2.

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