Hudson City Bancorp, Inc.
) spiked to a new 52-week high, touching $9.20 in the first half
of the trading session on Jun 27. The closing price of this stock
was $9.16, reflecting a solid year-to-date return of 11.3%. The
trading volume for the session was 2.3 million shares.
Although earnings for 2013 and 2014 are expected to substantially
decrease, there remains scope for revival based on this Zacks
Rank #3 (Hold) stock's estimated long-term earnings growth of
The merger agreement between Hudson City and
M&T Bank Corporation
), which was put on hold, has recently cleared all regulatory
hurdles. The merger agreement with M&T bank is worth $3.7
billion (in cash and stock). The approval from the Federal
Reserve has boosted the stock price to the current levels.
Hudson City's first-quarter 2013 earnings reflect the company's
consistent efforts to strengthen its balance sheet. In the
present low interest rate environment, Hudson City adopted
risk-averse strategies in order to maintain the stability of its
balance sheet. This in turn lowered earnings to 10 cents per
share from 15 cents in the prior-year quarter.
Though volatile economic environment was a headwind, latest
recovery trends along with the stabilizing housing market is
expected to positively impact Hudson City's loan portfolio and
stimulate its long-term growth.
In the last 60 days, the Zacks Consensus Estimate for 2013 fell
4.7% to 41 cents. Further, for 2014, the Zacks Consensus Estimate
decreased 9.8% to 37 cents per share over the same time
Better performing stocks in the same sector include
First Pactrust Bancorp, Inc.
Mutualfirst Financial Inc.
) - both of which carry a Zacks Rank #1 (Strong Buy).
FIRST PACTRUST (BANC): Free Stock Analysis
HUDSON CITY BCP (HCBK): Free Stock Analysis
MUTUALFIRST FIN (MFSF): Free Stock Analysis
M&T BANK CORP (MTB): Free Stock Analysis
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