On Sep 13, 2013, Zacks Investment Research upgraded
BOFI Holding Inc.
) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
BOFI has been experiencing rising earnings estimates on the
back of improved fourth-quarter and full-year 2013 results.
Moreover, improved deposit mix and loan portfolio as well as
expanded lending business have been impressive.
Additionally, this national bank delivered positive earnings
surprise in all the 4 quarters of fiscal 2013, with an average
beat of 4.66%. BOFI also outperformed the year-to-date Nasdaq
index, which posed a 25.5% increase against a robust return of
134.9% for the company.
On Aug 7, Eastern Insurance reported fourth-quarter 2013
operating earnings per share of 78 cents, which outpaced the
Zacks Consensus Estimate by 2 cents and the year-ago quarter
number by 21.9%.
Lower interest expense and provision of loan losses led to
29.6% year over year growth in net interest income, whereas
non-interest income surged 59% despite higher non-interest
expense. BOFI's assets and loan quality also remained strong,
whereas both loan portfolio and deposits witnessed growth of
about 30% each.
Additionally, capital ratios remained sturdy with Tier 1
risk-based capital of 14.52% at the end of fiscal 2013 against
13.69% in the prior year period. Even book value per share
increased 21.12% year over year to $19.16.
Further, the acquisition of $200 million worth of deposits
from Principal Bank is further expected to boost BOFI's clientele
and overall online banking business, which is rapidly gaining
traction due to convenience and security of the consumers.
Internet banking also makes the bank's operations less capital
Riding on a strong core fundamental growth trend, BOFI's
well-diversified business model is resilient enough to cater to
the changing market demands. Alongside strong capitalization, a
healthy balance sheet and consistent record earnings growth
scores well in retaining investor confidence.
Based on BOFI's fundamental strength and capital management,
the Zacks Consensus Estimate for fiscal 2014 rose 8% to $3.65 per
share in the last 30 days. Meanwhile, no downward revision in
estimates was witnessed for the year.
Other Stocks to Consider
Apart from BOFI, other outperformers in the financial services
Glacier Bancorp Inc.
East West Bancorp
). All the stocks carry a Zacks Rank #1 (Strong Buy).
BOFI HLDG INC (BOFI): Free Stock Analysis
EAST WEST BC (EWBC): Free Stock Analysis
GLACIER BANCORP (GBCI): Free Stock Analysis
PREFERRED BANK (PFBC): Free Stock Analysis
To read this article on Zacks.com click here.