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5 Reasons That Make Lakeland Financial Stock a Good Bet Now

Zacks Equity Research

Lakeland Financial Corporation LKFN seems to be an attractive pick now on the back of its top-line strength. Further, earnings strength and a strong balance sheet position are tailwinds.

A positive trend in estimate revisions reflects optimism over the company’s earnings growth prospects. The Zacks Consensus Estimate for Lakeland Financial’s 2019 earnings has witnessed marginal rise over the past 90 days. As a result, the stock currently carries a Zacks Rank #2 (Buy).

Further, the company’s shares have gained 27.3% over the past three months, outperforming the industry’s rally of 23.4%.

Why Lakeland Financial is an Attractive Option

Revenue Strength: Lakeland Financial’s revenues recorded a compound annual growth rate (CAGR) of 12.9% over the last five years (2014-2018). Further, the top line is expected to continue rising on the back of its efforts to expand business.

Earnings Growth: Lakeland Financial witnessed earnings growth of 16.38% in the last three to five years. This momentum is likely to continue in the near term as reflected by the company’s projected earnings per share growth rate (F1/F0) of 5.89%. Also, it delivered an average positive earnings surprise of 4.7% over the trailing four quarters.

Balance Sheet Growth: The company’s loans and deposits witnessed a CAGR of 9.1% and 8.9%, respectively, over a five-year period (ended 2018). This makes the company well poised for opportunistic expansions.

Strong Leverage: Lakeland Financial’s debt/equity ratio is valued at 0.05 compared with the industry’s average of 0.42, displaying lower debt burden relative to the industry.

Superior Return on Equity (ROE): The company’s ROE of 15.57% compared with the industry average of 10.97% reflects Lakeland Financial’s commendable position over its peers.

Key Picks

Barclays PLC’s BCS shares have rallied 35.4% over the past three months. Also, the company’s earnings estimates for 2019 have been revised 4.3% upward over the past 30 days. The stock sports a Zacks Rank of 1 (Strong Buy), at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

TD Ameritrade Holding Corporation AMTD share price has surged 51.3% in three months’ time. Further, the company’s earnings estimates for the ongoing year have moved nearly 1% north in the past 30 days. The stock flaunts a Zacks Rank of 1, currently.

E*TRADE Financial Corporation ETFC shares have gained 27.3% in the past three months. In addition, this Zacks Rank #2 (Buy) company’s earnings estimates for 2019 have moved up slightly in 30 days’ time.

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Barclays PLC (BCS) : Free Stock Analysis Report
Lakeland Financial Corporation (LKFN) : Free Stock Analysis Report
TD Ameritrade Holding Corporation (AMTD) : Free Stock Analysis Report
E*TRADE Financial Corporation (ETFC) : Free Stock Analysis Report
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Zacks Investment Research