Bear of the Day: Eagle Bancorp (EGBN)
There’s no question that the stock market has been red hot. All year, tech stocks have been screaming off the lows. There was a big bump in the road though. That bump came in the way of some very high-profile negativity in the banking sector. Most notably, smaller regional banks took an absolute dive after the bankruptcy of Silicon Valley Bank.
For the astute investor, it was a great time to come in and scoop up some bank stocks off the lows. It was truly a “throwing the baby out with the bathwater” scenario, as so many great banks lost tons in market value. Now that the dust has settled, a lot of those banks have rallied back to pre-panic levels. It may feel tempting to run out and buy more bank shares.
Look for banks with the strongest earnings trends and try to avoid those with the weakest trends. It could mean that profits are at risk in the intermediate term. One such stock is today’s Bear of the Day, Eagle Bancorp (EGBN). EAGLE BANCORP is the holding company for EagleBank. The Bank is headquartered in Bethesda, Maryland, and conducts full service commercial banking services through nine offices, located in Montgomery County, Maryland and Washington, D.C. The Company focuses on building relationships with businesses, professionals and individuals in its marketplace.
Image Source: Zacks Investment Research
Eagle is a Zacks Rank #5 (Strong Sell) in the Banks – Northeast industry which ranks in the Bottom 4% of our Zacks Industry Rank. The reason for the unfavorable rank is that over the last thirty days, analysts have cut their earnings estimates for the current quarter, next quarter, current year and next year. The bearish sentiment has cut our Zacks Consensus Estimate for the current year down from $4.47 to $2.93 while next year’s number is off from $4.50 to $3.77.
There are a handful of stocks within the Banks – Northeast industry which are in the good graces of our Zacks Rank. Those include Zacks Rank #1 (Strong Buy) stocks LCNB (LCNB) and OFG Bancorp (OFG).
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Eagle Bancorp, Inc. (EGBN) : Free Stock Analysis Report
OFG Bancorp (OFG) : Free Stock Analysis Report
LCNB Corporation (LCNB) : Free Stock Analysis Report
