On Mar 14, 2014, we issued an updated research report on
CIT Group Inc.
). Though the company reported lower-than-expected fourth-quarter
results, its strong balance sheet position and steady capital
deployment activities remain impressive.
In 2013, CIT Group had announced initiatives to recommence cash
dividend payout and share repurchases following the termination
of its agreement with the Federal Reserve Bank of New York (which
restrained the company from deploying capital without prior
approval). Hence, given the stable capital position, we believe
that CIT Group will continue to enhance shareholders' value going
Additionally, CIT Group's revenue growth primarily depends on the
overall macroeconomic condition. A steady improvement in the
economic environment as well as domestic market is expected to
increase demand for financing of inventories and capital
equipments, thereby facilitating earnings asset growth for the
However, CIT Group reported dismal fourth-quarter results owing
to a tax agreement settlement charge. A fall in the top line and
higher expenses also dampened the results.
Moreover, the disappointing results triggered a downward revision
in the Zacks Consensus Estimate, as analysts became more bearish
on CIT Group's future performance. For 2014, the Zacks Consensus
Estimate declined 4.2% to $3.93 per share and for 2015, the
Estimate fell 8.2% to $4.35 per share in the past 60 days.
CIT Group now has a Zacks Rank #3 (Hold).
Stocks That Warrant a Look
Some better-ranked banking stocks include
Portfolio Recovery Associates Inc.
Euronet Worldwide Inc.
General Finance Corporation
). All of these have a Zacks Rank #2 (Buy).
CIT GROUP (CIT): Free Stock Analysis Report
EURONET WORLDWD (EEFT): Free Stock Analysis
GENERAL FINANCE (GFN): Free Stock Analysis
PORTFOLIO RCVRY (PRAA): Free Stock Analysis
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