Commerce Bancshares, Inc.
) hit a new 52-week high of $48.06 during the first half of the
trading session on Nov 25. However, the stock closed the session
at $47.82, which reflects a year-to-date return of 33.8%. The
trading volume for the session was 298,906 shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
Midwest bank still has considerable upside left, given its
positive estimate revision over the last 60 days and expected
year-over-year earnings growth of 7.7% for 2013.
Commerce Bancshares' impressive price performance was driven by
steady capital deployment activities and strong third-quarter
2013 results that included a positive earnings surprise of 4.2%.
Additionally, the company maintains a robust capital position in
compliance with regulatory requirements.
On Oct 15, Commerce Bancshares declared third-quarter earnings of
75 cents per share, which beat the Zacks Consensus Estimate of 72
cents. Better-than-expected results came on the back of higher
non-interest income and decreased operating expenses, partially
offset by decline in net interest income.
Commerce Bancshares' total loans increased 12.3% to $10.8 billion
compared with the prior-year period. Total deposits rose 8.1%
year over year to $18.2 billion. Further, credit quality as well
as profitability ratios improved, thereby reflecting the
company's financial strength.
Further, Commerce Bancshares continues to meaningfully enhance
shareholders' value. Earlier this month, along with its regular
dividend payouts, the company declared an additional 5% stock
dividend for its shareholders.
Estimate Revisions Show Potency
In the last 60 days, the Zacks Consensus Estimate for 2013
increased 0.7% to $2.88 per share. For 2014, the Zacks Consensus
Estimate advanced 1.4% to $2.97 per share over the same time
Better-ranked banks in the same region include
First Interstate Bancsystem Inc.
German American Bancorp Inc.
Mainsource Financial Group
). All these stocks carry a Zacks Rank #1 (Strong Buy).
COMMERCE BANCSH (CBSH): Free Stock Analysis
FIRST INTST MT (FIBK): Free Stock Analysis
GERMAN AMER BCP (GABC): Free Stock Analysis
MAINSOURCE FINL (MSFG): Free Stock Analysis
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