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Why Provident Financial is an Attractive Pick Right Now?

Zacks Equity Research

Provident Financial Services, Inc PFS appears to be an attractive investment option right now based on a solid earnings outlook. The company has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential.

The stock’s Zacks Consensus Estimate for current-year EPS has been revised 4.3% upward, over the past 60 days. As a result, the stock currently sports a Zacks Rank #1 (Strong Buy).

The company’s price performance also looks impressive. Its shares have rallied 9.3% over the past six months as against the industry’s decline of 7%.


What Makes the Stock an Attractive Pick?

Earnings Growth: Provident Financial recorded 7.3% earnings growth over the last three-five years. The momentum is likely to continue in the near term as well, as reflected by the company’s projected EPS growth rate of 5.5% and 2.3% for 2019 and 2020, respectively.

Also, the company’s long-term (three-five years) estimated EPS growth rate of 8% promises rewards for investors.

Revenue Growth: Provident Financial’s revenues witnessed a CAGR of 6.9% over the last five years (2014-2018). Further, the top line will likely be up 4% in 2019 and 4.4% in 2020.

Superior Return on Equity: Provident Financial has an ROE of 8.92%, which is better than the industry average of 8.75%. This shows that the company reinvests its cash more efficiently than peers.

Other Key Picks

Dime Community Bancshares Inc’s DCOM shares have gained 6%, over the past year. The stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Great Southern Bancorp Inc’s GSBC shares have appreciated 9.4%, in the past year. At present, the stock flaunts a Zacks Rank of 1.

Banner Corporation’s BANR shares have gained 2.6% in a year’s time. Currently, it sports a Zacks Rank of 1.

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Banner Corporation (BANR) : Free Stock Analysis Report
 
Great Southern Bancorp, Inc. (GSBC) : Free Stock Analysis Report
 
Provident Financial Services, Inc (PFS) : Free Stock Analysis Report
 
Dime Community Bancshares, Inc. (DCOM) : Free Stock Analysis Report
 
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