On Feb 28, Zacks Investment Research upgraded
Banco Macro S.A.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Banco Macro has been witnessing rising earnings estimates on the
back of strong fourth-quarter 2012 results. Moreover, this
well-known foreign bank delivered average earnings surprise of
12.1% in the last 3 quarters.
Banco Macro reported fourth-quarter results on Feb 14. Earnings
per ADS came in at $1.48, beating the Zacks Consensus Estimate of
$1.25 by 18.4% and the prior-year quarter's earnings of $1.37 by
Better-than-expected results were attributable to top-line
growth, followed by improvement in the loan portfolio. However,
higher administrative expenses attributable to elevated personnel
expenses and increased other operating expenses acted as a
dampener for the quarter.
As of Dec 31, 2012, the bank's public sector assets to total
assets ratio was 3.9%, higher than 2.4% in the prior-year
quarter. Commercial loans growth was also driven by increase in
pledges and mortgages loans.
The Zacks Consensus Estimate for 2013 increased 0.6% to $5.22 per
share as 1 out of 4 estimates were revised higher over the last
30 days. For 2014, 1 of the 3 estimates moved north over the same
time frame, lifting the Zacks Consensus Estimate by 4.9% to $5.53
Other Stocks to Consider
Foreign banks that are currently performing well include
Banco Bilbao Vizcaya Argentaria, S.A.
BBVA Banco Franc
Shinhan Financial Group Company Limited
). All these companies carry a Zacks Rank #1.
BANCO BILBAO VZ (BBVA): Free Stock Analysis
BANCO FRANC-ADR (BFR): Free Stock Analysis
BANCO MACRO-ADR (BMA): Free Stock Analysis
SHINHAN FIN-ADR (SHG): Free Stock Analysis
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