First Midwest Bancorp Inc.
) reached a new 52-week high, touching $17.53 at the end of the
trading session on Nov 21. However, the stock closed the session
at $17.51, reflecting a solid year-to-date return of 32.5%. The
trading volume for the session was 233,111 shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy)
Midwest bank has considerable upside left, given its positive
estimate revisions over the last 30 days and expected long-term
earnings growth of 8.33%.
First Midwest's performance was primarily driven by robust
third-quarter 2013 results comprising an earnings surprise of
62.5%, along with a 75% hike in the quarterly cash dividend.
On Oct 23, First Midwest declared third-quarter earnings of 39
cents per share, which handily beat the Zacks Consensus Estimate
of 24 cents. Moreover, net income was $16.0 million, compared
with a net loss of $47.8 million in the year-ago quarter.
Earnings benefited from higher non-interest income, lower
expenses and a significant decline in provision for loan and
covered loan losses. However, decline in net interest income was
Further, on Nov 21, First Midwest's board of directors declared a
75% increase in its quarterly cash dividend to 7 cents per share.
Notably, the last payout was the company's 124th consecutive
Estimate Revisions Show Potency
In the last 30 days, the Zacks Consensus Estimate for 2013
increased 15.6% to $1.04 per share, based on the upward revision
of 7 out of 8 estimates. For 2014, the Zacks Consensus Estimate
advanced 1.9% to $1.08 per share over the same time frame.
Some other stocks worth considering in the same sector include
First Interstate Bancsystem Inc. (
German American Bancorp Inc.
). All these carry a Zacks Rank #1 (Strong Buy).
FIRST INTST MT (FIBK): Free Stock Analysis
FIRST MIDWST BK (FMBI): Free Stock Analysis
GERMAN AMER BCP (GABC): Free Stock Analysis
PRIVATEBANCORP (PVTB): Free Stock Analysis
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