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Huntington (HBAN) Up 5.2% YTD: What's Driving the Stock?

Zacks Equity Research

Of late, the finance sector has been putting up an impressive performance, with some monthly volatility. The United States’ economic health, on which this sector is largely dependent, has displayed steady improvement with increasing real GDP numbers, declining unemployment rate, improving consumer spending and stabilizing housing market.

Performance of banks in first-quarter 2019 was quite impressive. Loan growth, rising fee income, controlled expenses and rise in interest rates supporting margins boosted investors’ confidence in banking stocks. Therefore, some of these stocks can be profitable additions to your portfolio, supported by robust fundamentals and encouraging long-term prospects.

One such stock is Huntington Bancshares Incorporated HBAN, which has rallied 5.2% year to date.
 

Huntington Bancshares Incorporated Price

Huntington Bancshares Incorporated Price

Huntington Bancshares Incorporated price | Huntington Bancshares Incorporated Quote

Furthermore, with the improved macroeconomic environment and the company’s accomplishment of its core strategies, total revenues for 2019 are projected to be up 4-7% for Huntington, with the expectations of no interest rate hikes this year. Moreover, the company’s strategic initiatives, including expansion moves, are anticipated to bolster revenue growth.

Additionally, Zacks Consensus Estimate for this Zacks Rank #3 (Hold) stock have remained unchanged over the last 30 days, for 2019.

Huntington’s ROE of 14.2%, compared with the industry average of 10.7%, indicates the company’s commendable position over its peers.

Huntington’s earnings have increased 10.85% annually over the last three to five years. The earnings growth momentum is anticipated to continue in the near term as well. The company’s projected EPS (earnings per share) growth (F1/F0) is 10% for 2019 and (F2/F1) nearly 6.22% for 2020.

Additionally, Huntington is focused on acquiring the industry's best deposit franchise. The company’s total average deposits witnessed a three-year CAGR of 5.9% in 2018. In addition, driven by strong performance in the commercial and consumer portfolio, total average loan balance recorded a three-year CAGR of 5.8% in 2018. The increasing trend in average deposits and loan balances continued in the first quarter of 2019 as well.

Stocks to Consider

First Business Financial Services, Inc. FBIZ, currently flaunting a Zacks Rank #1 (Strong Buy), has been witnessing upward estimate revisions, for the past 60 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

Franklin Resources, Inc. BEN has been witnessing upward estimate revisions, for the past 60 days. At present, it sports a Zacks Rank of 1.

1st Source Corporation SRCE has been witnessing upward estimate revisions for the past 60 days. It currently carries a Zacks Rank #2.

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First Business Financial Services, Inc. (FBIZ) : Free Stock Analysis Report
 
1st Source Corporation (SRCE) : Free Stock Analysis Report
 
Huntington Bancshares Incorporated (HBAN) : Free Stock Analysis Report
 
Franklin Resources, Inc. (BEN) : Free Stock Analysis Report
 
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