A New 52 Week High for Fifth Third - Analyst Blog


Shares of Fifth Third Bancorp ( FITB ) crafted a new 52-week high, touching $18.60 at the beginning of the trading session on May 28. The closing price of this financial services provider reflects a solid year-to-date return of 17.7%. The trading volume for the session was 6.8 million shares.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock still has plenty of upside left, given its strong estimate revisions over the last 60 days and expected year-over-year earnings growth of 4.6% for 2013.

Growth Drivers

Fifth Third's impressive first-quarter 2013 results - including an earnings surprise of 12.8% - and solid capital deployment activities were the primary contributing factors behind the bank achieving the new high.

On Apr 18, Fifth Third reported its first-quarter adjusted earnings of 44 cents per share, surpassing the prior-year quarter number of 36 cents and beating the Zacks Consensus Estimate by a nickel.   

Improved credit quality aided by lower provision for loans and leases as well as strong capital position were the positives for the quarter. Moreover, an increase in loans and deposits reflect the company's organic growth.

Moreover, Fifth Third has now delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 8.4%.

Estimate Revisions Show Potency

Over the last 60 days, 19 of the 20 estimates for 2013 have been revised upward for Fifth Third, lifting the Zacks Consensus Estimate by 6.1% to $1.75 per share. For 2014, 14 of the 19 estimates moved north, helping the Zacks Consensus Estimate advance 2.4% to $1.74 per share.

Better performing regional banks include Meta Financial Group, Inc. ( CASH ),  WSFS Financial Corp. ( WSFS ) and Provident Financial Holdings, Inc. ( PROV ), both of which carry a Zacks Rank #1 (Strong Buy).

META FINL GRP (CASH): Free Stock Analysis Report

FIFTH THIRD BK (FITB): Free Stock Analysis Report

PROVIDENT FINL (PROV): Free Stock Analysis Report

WSFS FINL CORP (WSFS): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: CASH , FITB , PROV , WSFS



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