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5 Reasons That Make Glacier Bancorp (GBCI) Stock a Must Buy
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Despite the coronavirus-related chaos, it seems to be a wise idea to add Glacier Bancorp, Inc. (GBCI - Free Report) to your portfolio at the moment. The company’s robust fundamentals and prospects keep us encouraged. Further, the bank’s efforts to expand inorganically are commendable.
The Zacks Consensus Estimate for Glacier Bancorp’s earnings has been revised 5.9% upward for 2020, over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
The company’s shares have rallied 4.9% over the past six months, against the industry’s decline of 11.8%.
What Makes Glacier Bancorp a Solid Pick
Earnings Strength: Glacier Bancorp witnessed 12.5% growth in earnings over the past three to five years. Also, the company has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 1%. We believe the company’s earnings might continue to grow in the quarters ahead on its solid growth efforts.
Revenue Growth: Glacier Bancorp’s revenues witnessed a CAGR of 12.8% over the last five years (2015-2019). Steady improvement in loan and deposit balances as well as acquisitions will keep supporting the company’s revenues.
Over the past year, Glacier Bancorp has completed/announced a number of deals, which are expected to be accretive to earnings, and will expand its presence in several regions. The top line is expected to increase 12.6% in 2020.
Solid Balance-Sheet Position: As of Mar 31, 2020, Glacier Bancorp had total debt worth $1.2 billion, lower than the cash and cash equivalents balance of $273.4 million. The current total debt to total capital of 24.3% is below the industry average. Also, the company's times-interest-earned ratio of 15.9 at the end of first-quarter 2020 has improved on a sequential basis. These imply that the bank carries a relatively lesser credit risk and is likely to meet interest and/or debt obligations even if the economic situation worsens.
Capital Deployments: Glacier Bancorp has an impressive capital-deployment plan. The company hikes its quarterly dividend on a regular basis, with the last rise announced in September 2019. In aggregate, the bank has increased dividends 45 times. Further, last December, the company announced a special dividend, which is reflective of its strong performance. Given the earnings strength, the bank’s capital deployments look sustainable.
Superior Return on Equity: The company’s trailing 12-month return on equity (ROE) highlights its growth potential. Its ROE of 11.06% compares favorably with the industry’s 9.98%, underlining that it is more efficient in using shareholder funds than its peers.
Encore Capital Group Inc’s (ECPG - Free Report) earnings estimate for the current year has been revised 5.4% upward over the past 60 days. Over the past six months, this Zacks #2 Ranked company’s shares have gained 2.6%.
The earnings estimate for GAIN Capital Holdings, Inc. moved significantly north over the past 60 days for the ongoing year. The company’s shares have rallied 47.8% over the past six months. It carries a Zacks Rank of 2, at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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5 Reasons That Make Glacier Bancorp (GBCI) Stock a Must Buy
Despite the coronavirus-related chaos, it seems to be a wise idea to add Glacier Bancorp, Inc. (GBCI - Free Report) to your portfolio at the moment. The company’s robust fundamentals and prospects keep us encouraged. Further, the bank’s efforts to expand inorganically are commendable.
The Zacks Consensus Estimate for Glacier Bancorp’s earnings has been revised 5.9% upward for 2020, over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
The company’s shares have rallied 4.9% over the past six months, against the industry’s decline of 11.8%.
What Makes Glacier Bancorp a Solid Pick
Earnings Strength: Glacier Bancorp witnessed 12.5% growth in earnings over the past three to five years. Also, the company has an impressive earnings surprise history. It outpaced the Zacks Consensus Estimate in three of the trailing four quarters, the average positive surprise being 1%. We believe the company’s earnings might continue to grow in the quarters ahead on its solid growth efforts.
Revenue Growth: Glacier Bancorp’s revenues witnessed a CAGR of 12.8% over the last five years (2015-2019). Steady improvement in loan and deposit balances as well as acquisitions will keep supporting the company’s revenues.
Over the past year, Glacier Bancorp has completed/announced a number of deals, which are expected to be accretive to earnings, and will expand its presence in several regions. The top line is expected to increase 12.6% in 2020.
Solid Balance-Sheet Position: As of Mar 31, 2020, Glacier Bancorp had total debt worth $1.2 billion, lower than the cash and cash equivalents balance of $273.4 million. The current total debt to total capital of 24.3% is below the industry average. Also, the company's times-interest-earned ratio of 15.9 at the end of first-quarter 2020 has improved on a sequential basis. These imply that the bank carries a relatively lesser credit risk and is likely to meet interest and/or debt obligations even if the economic situation worsens.
Capital Deployments: Glacier Bancorp has an impressive capital-deployment plan. The company hikes its quarterly dividend on a regular basis, with the last rise announced in September 2019. In aggregate, the bank has increased dividends 45 times. Further, last December, the company announced a special dividend, which is reflective of its strong performance. Given the earnings strength, the bank’s capital deployments look sustainable.
Superior Return on Equity: The company’s trailing 12-month return on equity (ROE) highlights its growth potential. Its ROE of 11.06% compares favorably with the industry’s 9.98%, underlining that it is more efficient in using shareholder funds than its peers.
Other Key Picks
Central Valley Community Bancorp’s 2020 earnings estimate has been revised 28.7% upward over the past 60 days. This Zacks Rank #2 company’s shares have lost 24% over the past six months. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Encore Capital Group Inc’s (ECPG - Free Report) earnings estimate for the current year has been revised 5.4% upward over the past 60 days. Over the past six months, this Zacks #2 Ranked company’s shares have gained 2.6%.
The earnings estimate for GAIN Capital Holdings, Inc. moved significantly north over the past 60 days for the ongoing year. The company’s shares have rallied 47.8% over the past six months. It carries a Zacks Rank of 2, at present.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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