Great Southern Bancorp Upped to Strong Buy - Analyst Blog

By
A A A

On Jun 26, Zacks Investment Research upgraded Great Southern Bancorp Inc. ( GSBC ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Great Southern Bancorp has been witnessing rising earnings estimates on the back of the acquisition of Moline, IL - based Valley Bank and strong first-quarter 2014 results. The long-term expected earnings growth rate for this stock is 9%. Further, Great Southern Bancorp has now delivered positive earnings surprises in the last 4 quarters with an average beat of 27.12%.

On Jun 20, Great Southern Bancorp announced a purchase and assumption agreement with the Federal Deposit Insurance Corporation (FDIC) to purchase certain loans and other assets along with all deposits of Valley Bank. Under the agreement with the FDIC, Great Southern will take over Valley Bank deposits of about $356 million without premium. The deal, which strengthens Great Southern Bancorp's share in Des Moines, is anticipated to be accretive to income and equity beginning in the current quarter and the following quarters.

Great Southern Bancorp reported its first-quarter results on Apr 21 with earnings per share of 63 cents beating the Zacks Consensus Estimate of 51 cents by 23.53% and the year-ago earnings of 60 cents by 5%.

Robust results for the reported quarter were primarily driven by lower expenses. Moreover, lower provision for loan losses and reduced non-performing assets reflected improvement in credit quality. Yet, these positives were partially offset by a lower top line.

The Zacks Consensus Estimate for 2014 increased 1.8% to $2.27 per share, over the last 7 days. For 2015, the Zacks Consensus Estimate advanced 4.7% to $2.22 per share over the same time period.

Other Stocks to Consider

Some other banking stocks worth considering include West Bancorp., Inc. ( WTBA ), Astoria Financial Corporation ( AF ) and Anchor Bancorp ( ANCB ).  All 3 banks carry a Zacks Rank #1.


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

WEST BANCORP (WTBA): Free Stock Analysis Report

GREAT SOUTH BCP (GSBC): Free Stock Analysis Report

ASTORIA FINL CP (AF): Free Stock Analysis Report

ANCHOR BANCORP (ANCB): Get Free Report

To read this article on Zacks.com click here.

Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Business , Stocks

Referenced Stocks: WTBA , GSBC , AF , ANCB

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

Most Active by Volume

183,639,073
  • $42.32 ▲ 3.85%
82,623,623
  • $15.99 ▼ 22.79%
39,547,942
  • $119 ▲ 1.19%
32,107,751
  • $77.62 ▲ 2.63%
29,684,848
  • $10.60 ▲ 2.02%
27,615,309
  • $24.03 ▲ 0.38%
26,917,669
  • $31.10 ▲ 2.07%
26,464,306
  • $47.75 ▲ 0.59%
As of 11/26/2014, 04:15 PM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com