BankUnited Touches New 52-Week High - Analyst Blog

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Shares of BankUnited, Inc. ( BKU ) crafted a new 52-week high, touching $34.83 in the last hour of the trading session on Mar 31. The closing price of this major regional bank represents a return of 39.9% over the last one year. The trading volume for the session was around 0.7 million shares.

Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 60 days.

Growth Drivers

Impressive fourth-quarter 2013 results that included a rise in fee income, along with growth in loan and deposit balances, were the primary growth drivers for BankUnited. Further, the long-term expected earnings growth rate for the company is 8.9%.

On Jan 23, BankUnited reported fourth-quarter earnings at 50 cents per share, surpassing the Zacks Consensus Estimate by 8.7%. Results benefited from growth in non-interest income (up 6.4% from the prior-year quarter).

Moreover, as of Dec 31, 2013, net loans were $9.1 billion, up 61.5% year over year. Further, total deposits increased 23.4% to $10.5 billion.

On the flip side, rising expenses and a decline in net interest income dragged down the fourth-quarter results. Additionally, capital ratios and profitability deteriorated.  

Estimate Revisions Show Strength

Over the last 60 days, the Zacks Consensus Estimate for 2014 advanced nearly 1% to $1.81 per share while for 2015, it rose by a penny to $2.11 per share.

Other major banks worth considering include Fifth Third Bancorp ( FITB ), KeyCorp. ( KEY ) and Wells Fargo & Company ( WFC ). All these stocks carry the same Zacks Rank as BankUnited.



BANKUNITED INC (BKU): Free Stock Analysis Report

FIFTH THIRD BK (FITB): Free Stock Analysis Report

KEYCORP NEW (KEY): Free Stock Analysis Report

WELLS FARGO-NEW (WFC): Free Stock Analysis Report

To read this article on Zacks.com click here.



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: BKU , FITB , KEY , WFC

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