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Here's Why Valley National (VLY) Stock is a Solid Pick Now
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Underlying strength and healthy long-term prospects make Glenville, NY-based Valley National Bancorp (VLY - Free Report) a solid bet now. Also, its efforts to expand through opportunistic buyouts bode well.
Analysts are bullish on the stock. The Zacks Consensus Estimate for earnings has moved 11.8% and 7.2% upward for 2020 and 2021, respectively, over the past 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Shares of Valley National have lost 7.1% so far this year compared with the industry’s 17.8% fall.
What Makes it an Attractive Investment Pick?
Earnings Strength: Over the past three to five years, Valley National has recorded earnings growth of 13.3%. Though earnings are expected to decline 7.6% in 2020, mainly owing to a tough macro economic backdrop, the same is projected to rise 4.1% in 2021.
Revenue Growth: Valley National’s net revenues have witnessed a CAGR of 15.1% over the last five years (2015-2019). This top-line improvement was backed by strong loan and deposit balances. The momentum is expected to continue in the near term, with revenues expected to grow at a rate of 10.2% in 2020 and 0.5% in 2021.
Strategic Acquisitions: Over the past five years, Valley National has grown substantially through acquisitions and expanded footprint in Florida. Last December, the company acquired Oritani Financial Corp. for $835 million. Earlier in 2018, it completed the acquisition of USAmeriBancorp, Inc., while in 2015, the bank purchased CNLBancshares, Inc. These deals continue to support the company’s financials.
Superior ROE: Valley National’s trailing 12-month return on equity (ROE) highlights its growth potential. The company's ROE of 9.07% compares favorably with 8.79% for the industry, underlining that it is more efficient in using shareholder funds than peers.
Other Stocks Worth A Look
Tradeweb Markets Inc. (TW - Free Report) has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, the stock — sporting a Zacks Rank #1 (Strong Buy) at present — has gained 37.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings, Inc.’s earnings estimates for the current year have moved north in 60 days’ time. Further, the company’s shares have surged 47.8% over the past six months. At present, it holds a Zacks Rank of 2.
Mackinac Financial Corporation has witnessed an upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #2 Ranked stock has depreciated 32.1% over the past six months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Here's Why Valley National (VLY) Stock is a Solid Pick Now
Underlying strength and healthy long-term prospects make Glenville, NY-based Valley National Bancorp (VLY - Free Report) a solid bet now. Also, its efforts to expand through opportunistic buyouts bode well.
Analysts are bullish on the stock. The Zacks Consensus Estimate for earnings has moved 11.8% and 7.2% upward for 2020 and 2021, respectively, over the past 60 days. Currently, the stock carries a Zacks Rank #2 (Buy).
Shares of Valley National have lost 7.1% so far this year compared with the industry’s 17.8% fall.
What Makes it an Attractive Investment Pick?
Earnings Strength: Over the past three to five years, Valley National has recorded earnings growth of 13.3%. Though earnings are expected to decline 7.6% in 2020, mainly owing to a tough macro economic backdrop, the same is projected to rise 4.1% in 2021.
Revenue Growth: Valley National’s net revenues have witnessed a CAGR of 15.1% over the last five years (2015-2019). This top-line improvement was backed by strong loan and deposit balances. The momentum is expected to continue in the near term, with revenues expected to grow at a rate of 10.2% in 2020 and 0.5% in 2021.
Strategic Acquisitions: Over the past five years, Valley National has grown substantially through acquisitions and expanded footprint in Florida. Last December, the company acquired Oritani Financial Corp. for $835 million. Earlier in 2018, it completed the acquisition of USAmeriBancorp, Inc., while in 2015, the bank purchased CNLBancshares, Inc. These deals continue to support the company’s financials.
Superior ROE: Valley National’s trailing 12-month return on equity (ROE) highlights its growth potential. The company's ROE of 9.07% compares favorably with 8.79% for the industry, underlining that it is more efficient in using shareholder funds than peers.
Other Stocks Worth A Look
Tradeweb Markets Inc. (TW - Free Report) has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, the stock — sporting a Zacks Rank #1 (Strong Buy) at present — has gained 37.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings, Inc.’s earnings estimates for the current year have moved north in 60 days’ time. Further, the company’s shares have surged 47.8% over the past six months. At present, it holds a Zacks Rank of 2.
Mackinac Financial Corporation has witnessed an upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #2 Ranked stock has depreciated 32.1% over the past six months.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>