Grupo Financiero Upped to Strong Buy - Analyst Blog

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On Aug 28, Zacks Investment Research upgraded Grupo Financiero Galicia S.A. ( GGAL ) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Grupo Financiero has been witnessing rising earnings estimates following the announcement of robust second-quarter 2013 results. Moreover, this Argentinean bank has delivered an average beat of 5.6% in the past four quarters.

Grupo Financiero reported second-quarter 2013 results on Aug 8. Earnings per share of 56 cents surpassed the Zacks Consensus Estimate by 4 cents. Results benefited from top-line growth and a rise in provision for credit losses, partially offset by higher administrative expenses.

Results were also boosted by the income derived from Grupo Financiero's stake in Banco de Galicia y Buenos Aires S.A. and in Sudamericana Holding S.A. and from the deferred tax adjustment of 15.1 million pesos ($2.9 million).

Financial income rose 7.4% sequentially to $2.9 billion pesos ($0.6 billion). Moreover, income from services jumped 14.3% to $1.0 billion pesos ($0.2 billion). On the flip side, administrative expenses rose 9.2% from the prior quarter to $1.8 billion pesos. ($0.3 billion). However, provision for loan losses dropped 1.4% to 434.7 million pesos ($82.8 million).

Additionally, following the earnings release, the Zacks Consensus Estimate for 2013 increased 3.4% to $2.11 per share over the last 7 days. Similarly, for 2014, the Zacks Consensus Estimate advanced 7.4% to $2.04 per share over the same time period.

Positive earnings surprises and favorable estimate revisions stimulated the rank upgrade.

Other Stocks to Consider

While we prefer Grupo Financiero, other stocks carrying a Zacks Rank #1 include Glacier Bancorp Inc. ( GBCI ), Prosperity Bancshares Inc. ( PB ) and Sumitomo Mitsui Financial Group Inc. ( SMFG ).



GLACIER BANCORP (GBCI): Free Stock Analysis Report

GRUPO GALIC ADR (GGAL): Free Stock Analysis Report

PROSPERITY BCSH (PB): Free Stock Analysis Report

SUMITOMO-MITSUI (SMFG): Free Stock Analysis 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: GBCI , GGAL , PB , SMFG

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