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5 Reasons to Invest in Great Southern Bancorp (GSBC) Stock

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It seems to be a wise idea to add Great Southern Bancorp, Inc. (GSBC - Free Report) stock to your portfolio right now. Driven by strength in fundamentals and good earnings growth prospects, the company looks like a solid bet right now despite a tough operating backdrop.

The stock has been witnessing upward estimate revisions, of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for 2019 earnings has been revised 5.9% upward. Also, the stock currently carries a Zacks Rank #2 (Buy).

The company’s price performance also seems impressive. The stock has rallied 22.3% so far this year, outperforming the industry’s growth of 10.9%.



Here are a few other aspects that make Great Southern Bancorp a solid pick:

Earnings growth: Great Southern Bancorp’s earnings witnessed 10.2% growth in the past three-five years. The uptrend is expected to continue in the near term as reflected by its projected earnings per share (EPS) growth rate of 2.8% for 2019.

Further, the bank has an impressive earnings surprise history. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 21.1%.

Revenue strength: Great Southern Bancorp’s revenues have increased at a CAGR of 5.1%, over the last five years (2014-2018), supported by loan growth and higher interest rates. Moreover, the top line is expected to continue to grow in the near term as can be seen from its projected sales growth rates of 1.5% for 2019 and 2.1% for 2020.

Favorable valuation: Great Southern Bancorp currently has a Value Score of B. 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.

Superior Return on Equity (ROE): Great Southern Bancorp currently has ROE of 14.06%, which is higher than the industry average of 8.82%. This indicates that the company reinvests more efficiently than its peers.

Strong leverage: Great Southern Bancorp’s debt/equity ratio is 0.17 compared with the industry average of 0.66. The relatively strong financial health of the company will likely help it perform better than its peers in a dynamic business environment.

Other Key Picks

Dime Community Bancshares (DCOM - Free Report) currently sports a Zacks Rank #1. The company’s 2019 earnings estimates have moved 6.1% upward over the past 30 days. Its shares have rallied 19.2% so far this year.

The Zacks Consensus Estimate for Hilltop Holdings (HTH - Free Report) earnings has increased 11.2% over the past 30 days. Its shares have gained 27% so far this year. The stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

OFG Bancorp’s (OFG - Free Report) earnings estimates for the current year have been revised 3.4% upward over the past 30 days. Its shares have increased 24.9% year to date. The stock presently has a Zacks Rank #1.

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