Here's Why These 4 Bank Stocks Could Rally Post Q3 Results
Zacks Investment Research | Oct 02, 2017 10:30PM ET
The U.S. economy is slowly gaining traction as reflected by the rise in real GDP numbers, declining unemployment rate, improving consumer spending and a stabilizing housing market.
During the third quarter, global M&A activities remained strong and are likely to lend support to banking revenues. Also, the effect of June rate hike is expected to be fully reflected on net interest margin this quarter, thereby boosting revenues. On the flip side, loan growth remained soft and trading revenues were weak.
Though the quarter lacked volatility and was affected by hurricanes Harvey and Irma that temporarily curbed activities, the tax policy proposed by the Trump’s government has given banking stocks a boost.
Moreover, the Fed’s decision to trim its balance sheet slowly and initiate four more rate hikes by the end of 2018 has rekindled hopes of investors over banks’ performance.
Per our latest Zacks Finance Sector in the third quarter are expected to witness year-over-year growth of nearly 1%.
4 Bank Stocks That Might Rally Post Q3 Results
We have selected four bank stocks that have gained more than 5% since their second-quarter earnings release. These banks have also posted earnings surprises in the last three quarters.
Further, these stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see .
BancFirst Corporation (NASDAQ:BANF) : Headquartered in Oklahoma City, OK, the company operates as the holding company for BancFirst that provides a range of commercial banking services to retail customers and small to medium-sized businesses.
This Zacks #1 Ranked stock has rallied 10.9% since it reported second-quarter results on Jul 20.
Zions Bancorporation (NASDAQ:ZION) : The company offers community banking services, to the small and medium-sized business. It also provides corporate banking, commercial and residential development, residential mortgage servicing and lending. It is headquartered in Salt Lake City, UT.
The stock currently carries a Zacks Rank of 2 and has gained 5.8% since it released second- quarter results on Jul 25.
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Old National Bancorp (NASDAQ:ONB) : It operates as the holding company for Old National Bank that provides various financial services to individual and commercial customers in the United States. It is based in Evansville, IN.
It currently sports a Zacks Rank of 1 and has gained 10.8% since the release of second-quarter results on Jul 25.
CenterState Banks, Inc. (NASDAQ:CSFL) : The company operates as the holding company for CenterState Bank of Florida, N.A. that provides various consumer and commercial banking services to individuals, businesses, and industries in Florida.
The stock currently carries a Zacks Rank of 2. Its shares have gained 6.6% in the little time between its second-quarter results and now.
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
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