4 Reasons That Make Hancock (HBHC) An Attractive Pick Now
Zacks Investment Research | Jul 07, 2017 05:48AM ET
The rising rate environment and approval of the Financial Choice Act have renewed optimism regarding performance of banks. Hence, this is the right time to bet on banking stocks. Among others, Hancock Holding Company (NASDAQ:HBHC) might see a decent upside based on its underlying strength.
Hancock’s shares have gained 14.4% over the last one year compared to the Zacks categorized Banks - Southeast industry’s marginal loss.
The company witnessed an upward trend in earnings estimate revisions for 2018 over the last 30 days. As a result, the stock currently carries a Zacks Rank #2 (Buy).
Key Driving Factors
Earnings Per Share (EPS) Growth: Hancock witnessed EPS growth of 41.7% in the last three to five years compared with 11.5% for the broader industry.
Also, the company’s estimated EPS growth rate of 40% for 2017 compares with 9.3% for the industry.
Revenue Growth: Hancock continues to make steady progress toward improving its top line, with sales recording a three-year (2014–2016) compounded annual growth rate (CAGR) of 4.1%.
Further, its projected sales growth (F1/F0) of 16.2% compares favorably with the industry average of 2.1%.
Prudent Expenses Management: Hancock’s efforts to streamline its business have led to a decline in operating expenses at a CAGR of 3.4% in the last five years (ended 2016). Further, management believes feels that the upgradation of online banking by mid-2017 will lower the expenses.
Strong Leverage: Hancock’s debt/equity ratio is 0.19 compared with the industry average of 0.31. The relatively strong financial health of the company should help it perform better than its peers under a dynamic business environment.
Other Stocks to Consider
Some other stocks worth considering in the same space include Capstar Financial Holdings, Inc. (NASDAQ:CSTR) , Hilltop Holdings Inc. (NYSE:HTH) and Live Oak Bancshares, Inc. (NASDAQ:LOB) . All these stocks hold a Zacks Rank #2. You can see .
Capstar Financial has witnessed a 1.4% upward revision in the Zacks Consensus Estimate for the current year, in the past 60 days. Also, its shares have rallied 10.8% over the last year.
Hilltop Holdings’ earnings estimates have been revised upward nearly 1% for the current year, in the past 60 days. Also, over the last year, its shares have gained 24.9%.
Get The News You Want
Live Oak has witnessed a 4.2% upward revision in the Zacks Consensus Estimate for the current year, in the past 60 days. Also, its shares have jumped 76.5%, over the last year.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
It's not the one you think.
Zacks Investment Research
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.