We had issued an updated research report on
) on May 23, 2014. The company's growth trajectory remains
impressive, given the steady progress on both the organic and
inorganic front. However, pressure on top line and sluggish
economic recovery remain matters of concern.
BB&T continues to grow through acquisitions which aid its
revenue increase and geographical expansion. Looking ahead, the
company is well-positioned for further inorganic growth driven by
its strong balance sheet position.
Additionally, BB&T is a sound asset for yield-seeking
investors. The company recently raised its dividend by nearly 4% to
24 cents per share. We believe that the company's sound capital
health will enhance shareholder value going forward.
However, BB&T reported lower-than-expected first-quarter
earnings owing to a decline in revenues. Further, persistent rise
in total operating expenses remains a key concern. Also, given the
prevailing low rate environment, no significant improvement in
interest yield is expected over the next several quarters.
Dismal first-quarter results failed to gain investors and analysts'
confidence on the stock. Hence, over the last 30 days, the analysts
have become bearish on BB&T. This has caused the Zacks
Consensus Estimate for 2014 and 2015 to decrease by a penny to
$2.98 and $3.23 per share, respectively.
BB&T currently has a Zacks Rank #4 (Sell).
Stocks That Warrant a Look
Some better-ranked banking stocks include
CVB Financial Corp.
First Republic Bank
Central Valley Community Bancorp
). All of these carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
BB&T CORP (BBT): Free Stock Analysis Report
CVB FINL (CVBF): Free Stock Analysis Report
CENTRAL VLY COM (CVCY): Free Stock Analysis
FIRST REP BK SF (FRC): Free Stock Analysis
To read this article on Zacks.com click here.