Shares of TrustCo Bank Corp. NY (TRST) crafted a new 52-week high, touching $7.08 at the end of the trading session on Nov 19. However, the stock closed the session at $7.05, which reflects a solid year-to-date return of 33.8%.The trading volume for the session was 0.4 million shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 5.0%.
Impressive third-quarter 2013 results comprising a positive earnings surprise of 10.0% and lower loan loss provisions, together with a strong capital position were the key driving factors for TrustCo Bank.
On Oct 21, TrustCo Bank reported third-quarter 2013 earnings of 11 cents per share, beating the Zacks Consensus Estimate as well as prior-year quarter figure of 10 cents.
A year-over-year decline of 48.3% in provision for loan losses was a tailwind for the quarter. Moreover, the company’s improved asset quality and healthy capital ratios depict its strong position. However, a fall of 3.0% in non-interest income and 0.4% in net-interest income as well as a 0.2% rise in expenses were the headwinds.
Additionally, on Nov 19, the company declared a dividend of 6.5625 cents per share. The dividend will be paid Jan 2, 2014, to shareholders of record at the close of business on Dec 6, 2013.
Estimate Revisions Show Potency
Over the last 30 days, the single estimate for 2013 has been revised upward, lifting the Zacks Consensus Estimate by 5.1% to 41 cents per share. For 2014 too, the single estimate moved north, helping the Zacks Consensus Estimate advance 5.0% to 42 cents per share.
Some better performing banks include Arrow Financial Corporation (AROW), Center Bancorp, Inc. (CNBC) and Signature Bank (SBNY). All these stocks carry a Zacks Rank #1 (Strong Buy).