) reached a new 52-week high, touching $40.81 on Mar 25. However,
the stock closed the session at $40.77, reflecting a solid return
of 34.2% in a year's time. The trading volume for the session was
6.9 million shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given the positive estimate
revisions it witnessed over the past 90 days. Further, the
long-term expected earnings per share growth rate for this
regional bank now stands at 7.1%.
Decent stress test results and strong fourth-quarter 2013
earnings, including improvement in credit quality and disciplined
expense management, primarily drove the stock price.
On Mar 20, BB&T released the results of its annual
company-run stress test, which the bank cleared successfully.
This signals that the bank is in a good position to withstand
severe economic downturns going forward. Notably, this result
exhibited that BB&T Tier 1 capital is in the top quartile of
all the 30 banks that underwent the test.
Further, on Jan 16, BB&T came out with fourth-quarter 2013
earnings of 75 cents per share, beating the Zacks Consensus
Estimate by 4.2%. The reported figure was also above 71 cents
earned in the prior-year quarter.
Results were aided by lower non-interest expenses, fall in the
provision for credit losses, partially offset by a decline in the
top line. Further, the quarter witnessed increase in average
loans held for investment. Also, capital ratios and the
profitability ratios improved.
Estimate Revisions Show Potency
Over the last 90 days, the Zacks Consensus Estimate for 2014 has
advanced 1% to $3.05 per share. For 2015, the estimate moved up
around 0.6% to $3.35 per share over the same time frame.
Some better-ranked stocks in this space include
Fifth Third Bancorp
). All of these carry a Zacks Rank #2 (Buy).
BB&T CORP (BBT): Free Stock Analysis
BANKUNITED INC (BKU): Free Stock Analysis
COMERICA INC (CMA): Free Stock Analysis
FIFTH THIRD BK (FITB): Free Stock Analysis
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