BancorpSouth Reaches New 52-Week High - Analyst Blog

By
A A A

Shares of BancorpSouth, Inc. ( BXS ) crafted a new 52-week high, touching $20.56 at the beginning of the trading session on Aug 16. The closing price of this commercial banking and financial services provider represents a solid year-to-date return of 35.1%. The trading volume for the session was 646,247 shares.

Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days and expected long-term earnings growth of 6.0%.

Growth Drivers

Impressive second-quarter 2013 results - including a positive earnings surprise of 10% and significant improvement in the credit quality - as well as a strong capital position were the primary growth drivers for BancorpSouth.

On Jul 23, BancorpSouth reported its second-quarter 2013 net income of 22 cents per share, outpacing the Zacks Consensus Estimate by 10%. However, results were in line with the prior-year quarter earnings.

A year-over-year increase of 14.4% in non-interest revenue and a rise in deposits and loans were the tailwinds for the quarter. Moreover, the company's capital ratios depict its strong position. However, a 6.2% fall in net interest revenue and an escalation of 4.2% in non-interest expenses acted as headwinds for the quarter.

Further, BancorpSouth has now delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 0.85%.

Estimate Revisions Show Potency

Over the last 30 days, 8 out of 10 estimates for 2013 have been revised upward for BancorpSouth, lifting the Zacks Consensus Estimate by 8.8% to 99 cents per share. For 2014, all the 10 estimates moved north, helping the Zacks Consensus Estimate advance 9.3% to $1.17 per share.

Some better performing Southwest banks include Farmers Capital Bank Corporation ( FFKT ), Home Bancshares, Inc. (Conway, AR) ( HOMB ) and First M&F Corporation ( FMFC ). All 3 companies carry a Zacks Rank #1 (Strong Buy).



BANCORPSOUTH (BXS): Free Stock Analysis Report

FARMERS CAP KY (FFKT): Free Stock Analysis Report

FIRST M & F CRP (FMFC): Get Free Report

HOME BANCSHARES (HOMB): Free Stock Analysis Report

To read this article on Zacks.com click here.

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: BXS , FFKT , FMFC , HOMB

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

85,467,945
  • $16.74 ▼ 0.30%
83,530,302
  • $12.49 ▲ 85.31%
68,697,805
  • $42.55 ▼ 0.77%
58,516,965
  • $101.63 ▼ 0.03%
49,234,469
  • $74.58 ▼ 3.74%
39,038,134
  • $8.56 ▲ 2.27%
37,813,410
  • $49.38 ▼ 5.24%
37,004,144
  • $46.24 ▼ 0.97%
As of 9/15/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com