From the vast universe of banking stocks, today we chose TriCo Bancshares TCBK for you to consider. Based in Chico, CA the company offers a profitable investment opportunity based on steady earnings growth and strong fundamentals.
The company has been witnessing upward estimate revisions, reflecting analysts’ optimism. In the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 increased 5.2% and 2.6%, respectively.
Further, this Zacks Rank #2 (Buy) stock has rallied 6.1% in the last three months versus the industry’s gain of 4.2%.
TriCo Bancshares has a number of other aspects that make it an attractive investment option.
Earnings per Share (EPS) Strength: TriCo Bancshares has witnessed 16.7% growth in earnings per share over the last three to five years. The trend is expected to continue in the near term. The company’s projected EPS growth is also 16.7% for 2017.
Further, its long-term (three to five years) expected EPS growth of 10% promises rewards for shareholders.
Revenue Strength: The company’s revenues witnessed a CAGR of 18.2% over the last three years (2014–2016). Further, the top line is expected to grow 5.7% in 2017, higher than the industry average of 5.5%.
Superior Return on Equity (ROE): TriCo Bancshares has an ROE of 10.46%, better than the industry average of 9.51%. This shows that the company reinvests its cash more efficiently.
Leverage: TriCo Bancshares’ debt/equity ratio is 0.15 compares favorably with the industry average of 0.18. This leverage status should help the company perform better than its peers under a dynamic business environment.
Favorable Value Style Score: TriCo Bancshares has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a
Style Score of A or B, when combined with Zacks Rank of #1 (Strong Buy) or 2 (Buy), offer the best upside potential.
Other Stocks to Consider
Some other top-ranked stocks in the finance space are FS Bancorp, Inc FSBW, Guaranty Bancorp GBNK and Cathay General Bancorp CATY, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
FS Bancorp witnessed an upward earnings estimate revision of 16.2% for the current year, in the last 30 days. Its share price has increased 67.8% in the last 12 months.
The Zacks Consensus Estimate for Guaranty Bancorp was revised 1.4% upward for the current year, in the last 30 days. The company’s share price has increased 47.4% in the last 12 months.
Cathay General Bancorp witnessed upward earnings estimate revision of 0.8% for the current year, in the last 30 days. Its share price has increased 19.4% in the last 12 months.
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TriCo Bancshares (TCBK) : Free Stock Analysis Report
Cathay General Bancorp (CATY) : Free Stock Analysis Report
Guaranty Bancorp (GBNK) : Free Stock Analysis Report
FS Bancorp, Inc. (FSBW) : Free Stock Analysis Report
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