|Bid||20.04 x 900|
|Ask||20.90 x 4000|
|Day's Range||20.78 - 20.99|
|52 Week Range||17.57 - 22.17|
|Beta (5Y Monthly)||1.39|
|PE Ratio (TTM)||10.39|
|Earnings Date||Jan 21, 2020|
|Forward Dividend & Yield||0.28 (1.34%)|
|Ex-Dividend Date||Oct 30, 2019|
|1y Target Est||24.86|
Sterling Bancorp (STL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Financial stocks are among the market sectors facing an extremely uncertain future in 2020.Last year saw the sector pushed and pulled by factors including three Federal Reserve rate cuts, waffling on the U.S.-China trade deal and weak but eventually improving economic data from some of the world's largest economies. Financial stocks still managed a 29% gain amid the turmoil.But 2019 might seem like a cakewalk compared to what's ahead. Low interest rates still are hampering commercial banks, and no one is quite sure what's in store from the Fed. Meanwhile, the U.S. and China have a much more difficult path to finish the job started by their "phase-one" trade deal, and the 2020 election cycle will have Wall Street guessing all year at whether bank stocks will enjoy another accommodative presidential term.As a result, analysts' top picks in the financial sector aren't your usual "who's who" of big banks and insurers. While there are a couple of well-known consumer names, emerging fintech firms and smaller financial companies are catching the analyst community's eye.Here, then, are the seven best financial stocks to buy for 2020. We've used the Stock Screener tool from TipRanks to narrow down the sector's most compelling investment opportunities, as seen by Wall Street's analysts. All of these stock picks are so overloaded with bullish opinions, in fact, that they boast a "Strong Buy" consensus rating. Take a look. SEE ALSO: The 20 Best Stocks to Buy for 2020
MONTEBELLO, N.Y., Jan. 10, 2020 -- Sterling Bancorp (NYSE: STL), the parent company of Sterling National Bank, today announced that it plans to release results for the fourth.
Bank stocks underperformed the broader market in 2019. A changing landscape with increasing competition from fintech disruptors, low interest rates, and one-off credit events all played their part in stifling the industry’s growth. While the BANK index generated returns of more than 20%, the number still fell short of the S&P 500’s 29% increase.2020 brings with it new uncertainties, too; A U.S. presidential election, EPS volatility expected from CECL (current expected credit loss), the unavoidable change in the credit cycle, all attaching risk to financial stocks.While the sector is trading at one of the lowest multiples over the last two decades compared to the S&P 500, there are particular banking stocks that present a compelling opportunity.Investment firm Stephen sees several important stock plays in the banking industry for investors to consider in coming months. Using TipRanks’ Stock Comparison, we were able to read the fine print on 3 top picks the firm thinks investors should take note of in 2020. Additionally, we’ve confirmed that Stephen is in the majority on Wall Street in recommending these equities.Sterling Bancorp (STL)We’ll start off with a trip down to Montebello, New York, the home of regional bank holding company, Sterling Bancorp. STL focuses on providing financial services to small and midsize business owners, families, and consumers, primarily in the greater New York metropolitan area. Sterling stock beat the financial sector’s returns in 2019 and matched the S&P 500’s yearly 29% gain.Stephen’s Matthew Breese believes Sterling’s “profitability metrics as measured by ROA and ROTCE remain in the top quartile of peers.” The 4-star analyst argued these have helped drive “first/second quartile EPS and TBV growth over the last year and five years, respectively.”Furthermore, the analyst points out that Sterling’s balance sheet and EPS growth could be bolstered by portfolio purchases as well as further M&A activity. Historically, STL has been opportunistic in this regard and could pursue a similar strategy through 2021.Breese added “With accretable yield expected to fall to ~15bp of the NIM by early 2020, we anticipate net interest income will fall by ~2% in 2020 before inflecting and growing in 2021 by ~2%. Helping drive the inflection point is organic loan growth, anticipated at ~6%-8% through 2021… We think shares of STL are undervalued trading at~9x 2021 EPS vs. its historical 10-year P/E of 13.7x. In addition, when we compare STL to less profitable peers, the stock looks attractive, trading at a 3x-4x discount to peers on a P/E basis despite a ROA that’s superior by ~30bp.”Accordingly, the 4-star analyst reiterated an Overweight rating on STL. The accompanying price target of $25 suggests upside potential of 23%. (To watch Breese’s track record, click here)In general, the rest of the Street is on the same page. 5 "buy" ratings compared to 1 "hold" assigned in the last three months give it a Strong Buy analyst consensus. At the $25.75 average price target, shares could surge 24% over the next twelve months. (See Sterling Bancorp stock analysis on TipRanks)Spirit Of Texas Bancshares (STXB)Moving to the south, we head over to the Lone Star State, the home of Spirit Of Texas Bancshares. STXB is a fellow holding company with 36 locations across the state.The bank has been busy on the shopping front and in November, completed the acquisition of Chandler Bancorp, a deal which cost Spirit $17,900,000 million. The purchase marks Spirit’s tenth acquisition in Texas and third since going public in 2018. Full integration is expected by mid-2020, and Stephens’ Matt Olney believes that following the merger STXB “can improve its efficiency ratio to below 60% (currently at 62%).”An additional positive indicator for Olney is STXB’s loan portfolio, the majority of which is a combination of fixed rate or variable rate currently at a floor rate. Olney expects “earning asset yields to remain relatively stable which should help protect the Bank's strong NIM (net interest margin) of 4.63%.”Following a 3Q19 secondary equity capital raise, STXB’s “capital position remains strong.” Olney further added, “We believe STXB remains well capitalized for M&A opportunities and we expect the company to remain acquisitive and is targeting banks in the $300 million-$1billion in asset range. We estimate there are 100+ banks in their footprint within this specific range. Assuming the next deal is well structured, we anticipate the EPS accretion could be between mid to high-single-upper digits to low double digits.”As a result, the analyst left his Overweight rating and $28 price target as is. Should the target be met, investors’ boots will be stuffed with a 22% gain over the next 12 months. (To watch Olney’s track record, click here)Where do other analysts stand on the Spirit of Texas’ prospects for 2020? While the rest of the Street remains fairly quiet, the two fellow analysts chiming in with a view both put Spirit in the Buy category. The bank’s Strong Buy consensus rating comes with an average price target of $26.17 and indicates upside potential of 14%. (See STXB stock analysis on TipRanks)Ameris Bancorp (ABCB)For our final stock, we head up to Georgia, the base of regional bank, Ameris Bancorp. With $17.8 billion in total assets, the financial holding company has a foothold in the Southeastern states, with retail and commercial customers in Georgia, Alabama, Florida, South Carolina, and Tennessee.In July ’19, Ameris completed the acquisition of Fidelity Southern Corporation in a deal valued at $750.7 million. The deal adds Fidelity’s 62 bank branches to Ameris’ roster, 46 of which are located in Georgia and 16 in Florida. Stephen analyst Tyler Stafford believes the merger “added a high-quality deposit base (0.65% cost) and provides substantial liquidity.”Ameris had a highly profitable ROA (return on assets) of 1.54% in 2019. Stafford thinks this will “accelerate to 1.58% in 2021 given the added benefits of the LION acquisition.” The 4-star analyst also notes that “ABCB should see tailwinds in its mortgage division in the current interest rate environment.” Stafford models for mortgage fees/total revenue of 18%/16% in 2020 and 2021.“While ABCB has grown from about $5 billion to $17 billion in assets over the past 4 years (organically and through M&A), we believe the company is on the M&A sidelines over the next ~4-6 quarters as it focuses on capitalizing on the LION acquisition/Atlanta market disruption,” Stafford added.Based on the above, Stafford reiterated an Overweight rating on Ameris alongside a price target of $51, which implies potential upside of 19% from current levels. (To watch Stafford’s track record, click here)Overall, the Georgia bank has three other analysts currently following its progress, and all rate ABCB a Buy. Thus, Ameris qualifies as a Strong Buy. The average price target comes in at $50 and indicates upside potential of 17%. (See Ameris price targets and analyst ratings on TipRanks)
When world events hit the news, investors start to get nervous. Will a Mid-East airstrike push stocks lower, or oil higher? Will the change last, or will trading revert to normal after a few days? These normal questions, but they can sometimes push rational investors into irrational trades.CNBC crunched some numbers on the effects of world events and financial market price movements, and found an interesting patter for stock investors. Using data covering the past 30 years, the analysis showed that after oil, stocks show the best positive gain from “crisis trades.” For stocks purchased one day before an event occurred, the average return on the S&P 500 was 0.9% after one month – and 2.8% after three months.That’s a pattern to keep in mind, after news of the US airstrike in Baghdad that killed a top Iranian general. Importantly, major investment banks are giving similar advice to their clients. In a published note, Evercore ISI said to investors, “Barring an escalation, the backdrop for equities remains favorable.”Of course, the news is like lightning, and you never know when it will strike – so it’s best to be prepared, and keep your portfolio loaded up with stocks that show plenty of upside. We’ve used the TipRanks Stock Screener to sort over 6,400 publicly traded equities, setting the filters to show us small- to mid-cap companies, with Strong Buy consensus ratings, and upwards of 20% growth potential. Here are the results – three financial stocks that some of Wall Street’s best analysts are recommending.Focus Financial Partners (FOCS)First up is Focus Financial Partners, a wealth management firm that went public in summer of 2018. Focus provides investment management for independent firms, with a partnership arrangement. Focus’ model offers economies of scale in asset management, asset allocation, financial planning, and tax preparation to its partners.The company’s earnings have showed gains in every quarter reported since the IPO, and beaten the forecasts in three of the last four. In Q3 2019, the most recent reported, the company posted total revenues of $316.6 million, for a year-over-year gain of 34%. At the bottom line, the adjusted EPS, at 62 cents, also showed a 34% yoy gain. It was a good report, and prompted management to reiterate the company’s 20% annual growth target.5-star analyst Daniel Perlin, of RBC Capital, sees plenty of reason to believe that FOCS will continue growing. In his analysis of the firm’s strengths, the analyst noted, “The ability to accelerate organic growth at acquired firms. Focus’s services can often lead to accelerating revenue growth at acquired firms, in our estimation. In 2017, 55 partner firms utilized an average of at least four of Focus’s value-added services. Furthermore, partially reflecting these services, the annual revenue growth of acquired partner firms accelerates from a year 1 average of 5.7% to 9.5% by year 5.” Perlin’s Buy rating on FOCS is backed by a $37 price target, indicating confidence in 26% upside growth over the coming 12 months. (To watch Perlin’s track record, click here)Also writing for the bulls, Jefferies analyst Gerald O'Hara says, "Although organic growth will remain near-term volatile as the Company scales, FOCS' established platform in the fragmented and consolidating wealth mgmt universe is unique and differentiated. The ability to drive LT growth, offer resources, and steadily increase earnings 20%+ per annum is unique and will drive deleveraging. FOCS is positioned to be a partner of choice within a growth market with upside to current valuations." O'Hara rates FOCS shares a Buy alongside a price target of $34. (To watch O'Hara's track record, click here)All in all, Focus Financial maintains its Strong Buy consensus rating with 4 recent analyst reviews – including 3 Buys and 1 Hold. Shares are modestly priced, at $29.83, and the $37.25 average price target suggests an upside of 25%. (See Focus Financial stock analysis at TipRanks)Sterling Bancorp (STL)The “too big to fail” banks get the headlines, but smaller regional banks are taking up a large and growing part of the industry market share. Sterling Bancorp is one such company. Based in New York and serving the metropolitan New York City area along with the Hudson River Valley through its Sterling National Bank subsidiary, the company caters to small businesses and individuals. Sterling may be a smaller bank, but the company still has a market cap of $4.24 billion, and the bank controls assets exceeding $31.3 billion.Sterling offers investors plenty of inducement. For starters, STL shares gained 27% in 2019, and to add income to share appreciation, the company pays out a modest 1.3% dividend. Furthermore, the earnings show that this growth is sustainable: the company’s most recent quarterly earnings, for Q3 2019, reported strong numbers. The EPS of 59 cents beat the forecast by over 9%. Revenues also beat the estimates, and hit $268.09 million. The company boasted a 15% gain in commercial loan business.Writing from B. Riley FBR, 4-star analyst Steve Moss says, “We expect Sterling Bancorp 2020 results will show significant improvement over 2019 as the bank's balance sheet transformation generates higher quality earnings… STL's stock has outperformed peers in 2019... Our Buy rating reflects STL's attractive franchise, strong growth prospects as accretion runs-off, and attractive valuation at 10.1x our 2020 estimate of $2.10 and 10.9x our ex-accretion estimate of $1.95.”Moss backs up his Buy rating and optimistic forecast with an aggressive $26 price target indicating a 24% upside potential. (To watch Moss’s track record, click here.)Sterling’s analyst consensus rating is unanimous – the stock has received 5 positive reviews in the past two months. Shares are price at an affordable $20.51; the average price target of $26.30 suggests an upside potential of 28%. (See Sterling Bancorp stock analysis on TipRanks)MGIC Investment Corporation (MTG)MGIC, whose initials are an abbreviation of ‘Mortgage Guaranty Insurance Corporation,’ lives in the home-loan niche. A strong economy and rising wages have been good to MGIC; the company provides private mortgage insurance, and sales naturally go up in good times.A strong third quarter demonstrates MGIC’s favorable position. Revenues gained 9.6% year-over-year and reached $318.4 million, while EPS – although flat yoy at 48 cents – beat the estimates by 12%. The company’s premium income grew 7% in the quarter, and investment income gained 17%. Even better for MTG, the company saw a 31% year-over-year increase in new insurance written. That important metric came in at $19 billion.There were other growth indicators, which taken together put MGIC on a firm foundation. Employment and wages are rising, and housing demand with them. But also, delinquency rates are down as borrowers are better able to afford their home loans. Overall, the generally positive industry atmosphere has pushed MTG to a 31% 12-month gain.Weighing in from MKM Partners, 5-star analyst Harry Fong wrote of MTG, “New insurance written increased nearly 32% this quarter aided by stronger refinancing activity that also purchase mortgage insurance. Given the current low interest rate environment, refi’s jumped in the quarter. That not only benefited net earned premiums, but also new business… Looking ahead, there continues to be ample talk from Washington about changing our mortgage system that may allow for more growth in the private sector, but nothing done yet. In time, we do expect to see more growth as the folks in Washington begin to introduce changes to the current marketplace.”Fong showed his bullish side with a Buy rating on the stock and a price target of $18. His target implies a potential upside of 28%. (To watch Fong’s track record, click here)With an average price target of $17.63 and a current trading price of $13.91, MTG shares show a potential for 27% upside growth this year. The stock has a Strong Buy consensus rating based on 4 reviews – 3 are Buys and 1 is a Hold. (See MGIC’s stock analysis at TipRanks.)
Investing is all about developing a strong return on your money. There are a wide range of strategies to accomplish this, but the simplest is just to find stocks that are on an upward price appreciation trend and have a robust upside prediction from the market analysts.You can find stocks to fit that profile pretty easily, among the big-name market leaders, but those stocks usually come with a serious drawback: a high cost of entry. Not every investor wants to shell out several hundred – or more – dollars per share. Some can’t afford it, and some would prefer to buy more shares for their money. Fortunately, there are lower-cost stocks available with great upside potential.TipRanks, a company that measures and tracks the performance of market analysts, also tracks the movements of the stock markets. After all, if you truly want to understand an analyst’s review of a stock, you’ll need to know that stock’s market history.Even better for investors, TipRanks also offers an array of tools to find the right stock for any investing situation. Using the Stock Screener, the basic stock-selecting tool, we can search for stocks with upwards of 20% growth potential, that earn Strong Buy consensus ratings from the analysts. And when we sort the results by share price, we can find investment opportunities with an easy entry point. Let’s dive in and look at three such stocks.Trip.com Group, Ltd. (TCOM)By making it easier than ever to find and book flights, lodgings, and accommodations, the internet has changed the way we travel. No more appointments with travel agents – now we can just log on to our favorite search and booking website and make our arrangements online. Trip.com is a Chinese company in the online reservation sphere. The company’s revenues show the magnitude of the business – it did $4.5 billion worth of business in 2018.Trip.com is a new name for the company, adopted earlier this year. Before the change, it was called Ctrip. It made the name change – adopting the name of a US company it acquired in 2017 – to make it more “user friendly” for US based investors, as the newly re-named company is aiming for a more global audience.November was an all-around good month for the company, as Q3 results, reported just a few days after the name change, showed strong numbers. Income from operations increased by 52% year-over-year to hit $314 million, and total quarterly revenues came in at $1.5 billion. In forward guidance, the company predicted year-over-year growth of 8% to 13% in the fourth quarter. For 2019 as a whole, TCOM is up 27.9%, within 2 points of the S&P 500’s 29.3% gain.5-star analyst James Lee of Mizuho Securities maintained his Buy rating on TCOM earlier this month. He believes that long-term fundamentals remain intact for “China outbound” travel opportunities despite geopolitical uncertainties in regard to Hong Kong and Taiwan. In his comments on the stock, Lee said, “…we believe that non-GAAP operating margin of 20% for 2020 appears to be achievable... On revenue, management maintains confidence in its international business due to limited competition in outbound travel and continued growth in Skyscanner and Trip.com’s air business.” Lee’s $40 price target and 16% upside for the stock are slightly cautious compared to the analyst consensus. (To watch Lee’s track record, click here)That analyst consensus is based on the 6 most recent reviews of TCOM, which include 5 Buys and 1 Hold, and give the stock Strong Buy status. The share price is a bargain, at just $34.61 – especially when you consider that the average price target of $41.38 suggests an upside potential of 20%. (See Trip.com stock analysis on TipRanks) Liberty Media Corporation (LSXMA)As the name suggests, Liberty is a media company. The company has owned over a dozen different outlets since the 1990’s, primarily in television and broadcasting. Currently, Liberty has three diverse divisions, controlling its ownership stakes in the Atlanta Braves, Sirius XM satellite radio, and the Formula One Group.The third quarter was mixed for LSXMA. Revenues, at $2.01 billion, beat the estimates by 2.5%, but EPS missed badly, coming in at just 5 cents per share compared to a forecast of 54 cents. The company has supported share values in the quarter with a $464 million repurchase program. Liberty CEO Greg Maffei was upbeat in his comments, despite the EPS miss, saying, “SiriusXM continues to deliver and posted another record-breaking quarter… Formula 1 continues to show great momentum and is on track to hit 2019 targets… and the Braves secured their second straight NL East division title.”Investors weren’t phased by the low earnings. LSXMA shares are up 2.8% since the earnings report, and the stock has shown 31% growth in 2019, modestly outpacing the broader markets.Writing from Deutsche Bank, 5-star analyst Bryan Kraft notes, “Liberty's history of tax-efficient solutions to ownership structures gives us confidence they can, once again, find a way to resolve the NAV discount without material tax leakage. That may come some time down the road, but we continue to see LSXMA as the preferred way to own SIRI.” Kraft gives the stock a Buy rating with a $66 price target, suggesting an impressive upside of 37%. (To watch Kraft’s track record, click here)The Strong Buy analyst consensus on LSXMA is unanimous, with 4 recent reviewers giving the stock Buy ratings. The average price target is $61.37, implying a 27% premium from the current share price of $48.17. (See Liberty Media stock analysis on TipRanks) Sterling Bancorp (STL)From travel websites and media companies, we now move to the banking sector. Sterling is a regional company, based in metro New York and the Hudson Valley, and serving customers through is main subsidiary, the Sterling National Bank. Sterling caters to small businesses and individuals, as well as offers a full range of banking and financial services. The company has a market cap of $4.24 billion, and the bank controls assets exceeding $31.3 billion.The third quarter was good to STL this year. The company reported revenues and EPS that both exceeded the forecasts. Revenue came in at $275.2 million, and EPS, at 59 cents, was 9.2% better than expected. Commercial loans grew 14.4% year-over-year, an important gain in a key metric.The company felt confident enough in the quarterly results to maintain its dividend, a modest 7 cents per share, with a yield of 1.3%. This yield is slightly lower than the S&P average of 2%, but still represents a steady income for return-minded investors. Shares of STL are up 27% this year, beating the Dow Jones return of 23%.RBC Capital analyst Steven Duong met with STL management last month and came away impressed. He wrote, “Conversations with management and investors reinforce our view that STL is a best-in-class company supported by strong organic and acquisitive growth and a diversified balance sheet offering optionality in various operating environments.” Duong duly set a Buy rating on the stock, along with a $26 price target that implies an upside of 24%. (To watch Duong’s track record, click here)Like the other stocks on this list, STL gets a Strong Buy from the analyst consensus – and like LSXMA, that consensus rating is unanimous. Four of Wall Street’s analysts have given STL a Buy rating in recent months. The stock has the lowest share price on this list, at $20.98, and the average price target of $26.13 suggests an upside of 25%. (See Sterling Bancorp stock analysis on TipRanks)
MONTEBELLO, N.Y., Dec. 16, 2019 -- Sterling Bancorp (NYSE: STL) (the “Company”), the parent holding company of Sterling National Bank, announced today the closing of its.
MONTEBELLO, N.Y., Dec. 16, 2019 -- Sterling Bancorp (NYSE: STL), the parent company of Sterling National Bank, today announced that the Board of Directors has declared a.
Sterling Bancorp (STL) (the “Company”), the parent holding company of Sterling National Bank, announced today that it has priced $275 million aggregate principal amount of its 4.00% fixed-to-floating rate subordinated notes due 2029 (the “Notes”). Sandler O’Neill + Partners, L.P., Keefe, Bruyette & Woods, Inc. and U.S. Bancorp Investments, Inc. are acting as joint book-running managers for the offering. The Company expects to close the transaction, subject to customary closing conditions, on or about December 16, 2019.
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to...
Before we spend days researching a stock idea we like to take a look at how hedge funds and billionaire investors recently traded that stock. Russell 2000 ETF (IWM) lagged the larger S&P 500 ETF (SPY) by more than 10 percentage points since the end of the third quarter of 2018. This means hedge funds […]
In order to boost commercial lending capabilities, Sterling Bancorp's (STL) subsidiary acquires middle market commercial equipment finance loans and leases from Santander Bank.
MONTEBELLO, N.Y., Dec. 02, 2019 -- Sterling Bancorp (NYSE: STL), announced today that its principal subsidiary, Sterling National Bank, has completed the previously announced.
Sterling Bancorp (STL), of which the principal subsidiary is Sterling National Bank, today announced that it has added veteran technology bankers John Hoesley and Josh Roberts to lead its newly created Innovation Finance Group. The Innovation Finance Group will focus on providing a full suite of lending and banking products to growing technology companies across all stages of development, including asset-based solutions, recurring revenue-based revolving lines of credit, treasury management, foreign exchange and other solutions.
Anyone researching Sterling Bancorp (NYSE:STL) might want to consider the historical volatility of the share price...
Hedge funds are known to underperform the bull markets but that's not because they are bad at investing. Truth be told, most hedge fund managers and other smaller players within this industry are very smart and skilled investors. Of course, they may also make wrong bets in some instances, but no one knows what the […]
Sterling Bancorp (STL) delivered earnings and revenue surprises of -3.70% and 5.06%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
Sterling National Bank (STL) today announced a significant step forward in its ongoing strategy of driving positive operating leverage through entry into a new strategic relationship with Deloitte to implement the Advanced Digital Technology Program. This new program is designed to accelerate Sterling’s commitment to deploy leading technologies in the delivery of products and services to clients, middle and back office operations and IT infrastructure. The Advanced Digital Technology Program will provide a foundation for continued future growth through a low-cost, highly scalable operating platform, efficient and agile deployment of new and enhanced services, and by advancing Sterling’s digital banking capabilities for commercial and consumer clients. Consistent with Sterling’s operating model, this program will be self-funded through direct cost savings and the continued rationalization of Sterling’s physical distribution channels and back office operations.
Key Performance Highlights for the Three Months ended September 30, 2019 vs. September 30, 2018 ($ in thousands except per share amounts)GAAP / As Reported Non-GAAP / As.
MONTEBELLO, N.Y., Oct. 23, 2019 -- Sterling Bancorp (NYSE: STL), the parent company of Sterling National Bank, today announced that the Board of Directors has declared a.