It seems to be a wise idea to add Civista Bancshares, Inc. CIVB stock to your portfolio now, given the company’s steady revenue and earnings growth as well as strong liquidity position. Moreover, improving economy, higher interest rates and decent rise in demand for loans are expected to keep supporting its profitability.
Additionally, the Zacks Consensus Estimate for the bank’s current-year earnings has been revised 4.6% upward over the past 30 days, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently sports a Zacks Rank #1 (Strong Buy).
Further, the company’s price performance seems impressive. Over the past three months, the stock has gained 13%.
Here are some other factors that make Civista Bancshares stock an attractive investment option.
Earnings per Share (EPS) Growth: Civista Bancshares witnessed EPS growth of 21.1% in the last three to five years, significantly above the industry average of 12.1%. This earnings momentum will likely continue in the near term, as reflected by the company’s projected earnings growth rate of 9.7% for 2019 and 5.9% for 2020.
Moreover, Civista Bancshares has an impressive earnings surprise history. The bank delivered an average positive earnings surprise of 10.5% in the trailing four quarters.
Further, the company’s long-term (three-five years) estimated EPS growth rate of 8.0% promises rewards for investors.
Revenue Strength: Civista Bancshares’ revenues witnessed a compounded annual growth rate (CAGR) of 10.1% over the last six years (2013-2018). The top-line improvement was backed by strong loan and deposit growth. Further, higher interest rates will continue supporting revenues.
The company’s projected sales growth rates of 24.3% and 4.6% for 2019 and 2020, respectively, ensure the continuation of the upward revenue trend.
Superior Return on Equity (ROE): Civista Bancshares’ ROE is 12.14% compared with the industry average of 11.29%. This indicates that the company reinvests its cash more efficiently compared with the industry.
Stock seems Undervalued: Civista Bancshares seems undervalued when compared with the broader industry. Its current price-to-earnings (F1) and price-book ratios stand at 10.6 and 1.2 currently. These are lower than their respective industry averages of 11.4 and 1.4.
Further, the stock has a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Other Stocks Worth Considering
A few other top-ranked stocks from the finance space are Gladstone Investment Corporation GAIN, Enterprise Financial Services Corp. EFSC and Saratoga Investment Corp. SAR. All these stocks currently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Gladstone Investment’s Zacks Consensus Estimate for the current fiscal-year earnings has remained stable over the past 30 days. The stock has gained nearly 19% in the past three months.
Enterprise Financial’s current-year earnings estimates have been revised 3.4% upward in the past 60 days. Further, the company’s shares have gained nearly 4% in the past three months.
Over the past 60 days, Saratoga Investment witnessed an upward earnings estimate revision of 2% for the current fiscal year. Additionally, the stock has gained around 2% in the past three months.
Zacks' Top 10 Stocks for 2019
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Civista Bancshares, Inc. (CIVB) : Free Stock Analysis Report
Enterprise Financial Services Corporation (EFSC) : Free Stock Analysis Report
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