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The Zacks Analyst Blog Highlights: CommerceWest Bank, DNB Financial and FVCBankcorp

Zacks Equity Research
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For Immediate Release

Chicago, IL – September 18, 2017 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include CommerceWest Bank (OTCBB:CWBK – Free Report), DNB Financial Corporation (Nasdaq:DNBF – Free Report) and FVCBankcorp, Inc. (OTCMKTS:FVCB– Free Report).

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Here are highlights from Friday’s Analyst Blog:

Here’s Why These 3 Bank Stocks May Stop Rallying

The U.S banking industry, which has witnessed a solid rally since the beginning of the year with investors’ optimism over President Trump’s policy reforms and rising interest rates, seems to have lost momentum recently.

Lack of any tangible progress on the promises made by Trump and uncertainty related to the pace of interest rate hikes in the future are primarily responsible for the recent dislike of investors for this space.

Further, the expectation of the industry witnessing declining mortgage banking and trading revenues in the upcoming quarter has sidelined hopes of top-line recovery.

Finally, lower-than-expected easing in banks’ margin pressure despite the three rate hikes since last December is discouraging investors to bet on the industry. Though a rising rate environment is favorable for the banking system, lenders have not been able to generate revenues due to uneven movements in short and long-term rates.

Which Segment Suffered Most?

Given the challenging environment, Zacks medium level bank industry, Banks & Thrifts, has declined 6.8% year to date, significantly underperforming the S&P 500’s rally of 11.6%.  

Despite this price decline, the banks in this group seem overvalued when compared with the broader Zacks Finance Sector. Banks & Thrifts have a price-to-book ratio of 1.82 compared with 1.54 for the broader market.

3 Stocks That Might Not Rally Further

We have selected stocks that have gained more than 20% so far this year, but have been witnessing a downward trend in earnings estimate revisions and carry a Zacks Rank #4 (Sell) or #5 (Strong Sell).   

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

CommerceWest Bank (OTCBB:CWBK – Free Report):The stock has gained nearly 26% year to date. The Irvine, CA-based company has a Zacks Rank of 4. Further, its Zacks Consensus Estimate for the current-year earnings has been revised 5.5% downward over the last 60 days.

DNB Financial Corporation(Nasdaq:DNBF – Free Report): Shares of this bank have gained 20.1% year to date. However, its Zacks Consensus Estimate for the current-year earnings has been revised 10.41% downward over the last 60 days. The Downingtown, PA-based bank carries a Zacks Rank of 5.

FVCBankcorp, Inc.(OTCMKTS:FVCB – Free Report): Shares of this bank have gained 25% so far this year. Its Zacks Consensus Estimate for the current-year earnings has been revised 1.9% downward over the last 60 days. This Fairfax, VA-based lender carries a Zacks Rank of 4.

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.

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Fvcbankcorp, Inc. (FVCB) : Free Stock Analysis Report
DNB Financial Corp (DNBF) : Free Stock Analysis Report
CommerceWest Bank NA (CWBK) : Free Stock Analysis Report
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