On Jan 4, 2014, Zacks Investment Research upgraded
Cape Bancorp, Inc.
) to a Zacks Rank #1 (Strong Buy).
CAPE BANCORP (CBNJ): Free Stock Analysis
GREAT SOUTH BCP (GSBC): Free Stock Analysis
MUTUALFIRST FIN (MFSF): Free Stock Analysis
WASH FEDL INC (WAFD): Free Stock Analysis
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Why the Upgrade?
Cape Bancorp has been witnessing rising earnings estimates on the
back of strong third-quarter 2013 results. Moreover, this
well-known business and personal banking products and services
provider delivered positive earnings surprises in 3 of the last 4
quarters with an average beat of 50.2%.
Cape Bancorp reported third-quarter results on Oct 24 with
earnings per share of 16 cents, beating the Zacks Consensus
Estimate of 9 cents by 77.8%. Robust results for the reported
quarter were primarily driven by a fall in expenses, rise in
non-interest income and reduction in provision for loan losses.
However, a decline in net interest income partly offset the
company's disciplined expense management. Despite this, the
company's strong capital position and a marked improvement in its
credit quality were the positives.
Further, as of Sep 30, 2013, total net loans were $764.6 million,
up 6.4% year over year. Total deposits totaled $828.4 million,
depicting a rise of 9.9%.
Following third-quarter 2013 results, the Zacks Consensus
Estimate for 2013 rose 25.6% to 54 cents per share over the last
60 days. For 2014, the Zacks Consensus Estimate jumped 52.8% to
55 cents per share over the same time frame.
Additionally, on Dec 23, the company's board of directors
authorized a third stock buyback program for the repurchase of
about 602,989 shares of the company's issued and outstanding
common shares. Cape Bancorp's second stock repurchase program was
completed on Oct 3.
We believe that the company's shareholder friendly approach and
positive estimate revision led to the rank upgrade.
Other Stocks to Consider
Besides Cape Bancorp, other banks in the same sector that are
worth considering include
Great Southern Bancorp Inc.
Washington Federal Inc.
Mutualfirst Financial Inc.
). All 3 banks carry a Zacks Rank #1.