Here's Why Eagle Bancorp Montana is Worth Betting on Now
Amid the coronavirus pandemic, it seems to be a wise idea to add Eagle Bancorp Montana, Inc. EBMT stock to your portfolio now, given the strength in its fundamentals and solid growth prospects. Also, its revenue and earnings projections are impressive.
The company has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for 2020 and 2021 earnings has displayed an upward trend.
This Zacks Rank #2 (Buy) stock has appreciated 0.4%, in the past year, as against the industry’s decline of 35.7%.
Why is Eagle Bancorp a Golden Egg?
Revenue Strength: The company has witnessed a rise in net revenues over the last three years and total revenues are projected to grow at a rate of 18.3% in 2020 (compared with the nil industry average). This upward trend is anticipated to be supported by a decent lending scenario and Eagle Bancorp’s efforts to grow fee income on rising net mortgage banking revenues.
Steady Capital-Deployment Activities: The company remains committed to enhancing its shareholders’ value. In 2019, the board authorized the repurchase of up to 100,000 shares of its common stock. Further, the bank has been actively paying common stock dividends for years, with the latest hike in July 2019.
Earnings per Share Growth: Eagle Bancorp Montana’s earnings for 2020 are projected to increase 10.8%. This earnings momentum is likely to continue in the near term, as reflected by the company’s impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed in the other.
The company has a Growth Score of A. Our research shows that stocks with the combination of a Style Score of A or B, and a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Superior Return on Equity (ROE): Eagle Bancorp Montana’s ROE of 11.9%, compared with the industry’s 10.14% average, highlights the company’s commendable position over its peers.
Stock Looks Undervalued: Eagle Bancorp Montana looks undervalued, with respect to price/earnings (P/E) (F1) and price/cash flow (P/CF) ratios. It has a P/E (F1) ratio of 7.37, which is below the industry average of 11.14. Also, its P/CF ratio of 5.63 is lower than the industry average of 6.07.
Additionally, the stock currently has a Value Score of B. 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.
Other Stocks to Consider
Tradeweb Markets Inc TW has witnessed upward earnings estimate revisions for 2020 over the past 30 days. Moreover, this Zacks #1 Ranked stock has gained 39.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings, Inc. GCAP current-year earnings estimate moved north in 30 days’ time. Further, the company’s shares have appreciated 57% over the past six months. At present, it sports a Zacks Rank of 1.
Mackinac Financial Corporation MFNC has witnessed upward earnings estimate revision for the ongoing year in the past 30 days. This Zacks #2 Ranked stock has depreciated 38.7% over the past six months.
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Tradeweb Markets Inc. (TW) : Free Stock Analysis Report
Eagle Bancorp Montana, Inc. (EBMT) : Free Stock Analysis Report
GAIN Capital Holdings, Inc. (GCAP) : Free Stock Analysis Report
Mackinac Financial Corporation (MFNC) : Free Stock Analysis Report
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