Fifth Third Bancorp
) crafted a new 52-week high, touching $20.16 at the beginning of
the trading session on Nov 15. However, the stock closed the
session at $19.94, which reflects a solid year-to-date return of
29.0%.The trading volume for the session was 6.1 million shares.
Despite the strong price appreciation, this Zacks Rank #3 (Hold)
stock has plenty of upside left, given its strong estimate
revisions over the last 30 days and expected long-term earnings
growth of 8.7%.
Though Fifth Third's third-quarter 2013 results missed
expectations, its top-line growth and strong capital position
were the tailwinds. Additionally, lower non-interest expenses
reflected disciplined expense management.
On Oct 17, Fifth Third reported third-quarter 2013 adjusted
earnings of 41 cents per share (excluding the benefit on the sale
of shares of Vantiv and valuation of the warrant which Fifth
Third holds in Vantiv), which missed the Zacks Consensus Estimate
by a penny. However, results surpassed the prior-year quarter
earnings of 39 cents.
The company recorded year-over-year increase of 2.6% in
total revenue, aided by a 7% year-over-year rise in non-interest
income. Additionally, a 5.0% year-over-year drop in non-interest
expenses was reported. Further, improvement in deposits and loans
as well as capital ratios reflected the company's strong
position. However, a 1.0% drop in net-interest income was a
Estimate Revisions Show Potency
Over the last 30 days, 10 out of 18 estimates for 2013 have been
revised upward, lifting the Zacks Consensus Estimate by 3.6% to
$2.00 per share. For 2014, 7 out of 19 estimates moved north,
helping the Zacks Consensus Estimate advance 1.1% to $1.76 per
Other better performing banks include
). All these stocks carry a Zacks Rank #2 (Buy).
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