Itau Unibanco Downed to Strong Sell - Analyst Blog

By
A A A

On January 1, Zacks Investment Research downgraded Itau Unibanco Holding S.A. ( ITUB ) to a Zacks #5 Rank (Strong Sell).

Why the Downgrade?

The company has witnessed downward estimate revisions after reporting disappointing third-quarter 2012 results. Moreover, the shares of this Brazilian bank have been on a downtrend since the end of April 2012. Given the negative earnings surprise trend in the last three quarters, it has more downside left.

On October 23, 2012, Itau Unibanco reported its third-quarter earnings per share of 36 cents, missing the Zacks Consensus Estimate by two cents.

Earnings were primarily aided by a sequential dip in non-interest expenses (down 3.1% sequentially) as well as a slight decline in provisions for loan losses (decreased 0.8% sequentially). However, these positives were more than offset by a 3.7% sequential decline in operating revenues, 4.8% dip in managerial financial margin and 0.9% decline in Banking Service Fees and Income from Banking Charges.

The Zacks Consensus Estimate for 2012 decreased 5.4% to $1.58 per share over the last 60 days. For 2013, the Zacks Consensus Estimate reduced 8.7% to $1.68 per share over the same time frame.

Other Stocks to Consider

Not all banking stocks are performing as poorly as Itau Unibanco. The following banking stocks with favorable Zacks Rank are performing well and are worth considering:

1)    The Blackstone Group LP ( BX ) carries a Zacks #1 Rank (Strong Buy)
2)    Banner Corporation ( BANR ) holds a Zacks #1 Rank (Strong Buy)



BANNER CORP (BANR): Free Stock Analysis Report

BLACKSTONE GRP (BX): Free Stock Analysis Report

BANCO ITAU -ADR (ITUB): 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: BANR , BX , ITUB

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

How to Fire Your Adviser
How to Fire Your Adviser            

Stocks

Referenced

Most Active by Volume

75,750,465
  • $16.77 ▲ 0.36%
59,791,764
  • $101.58 ▲ 0.71%
38,720,622
  • $42.59 ▼ 0.28%
37,416,417
  • $46.52 ▼ 0.51%
35,101,793
  • $16.28 ▲ 0.74%
34,987,975
  • $99.53 ▲ 0.15%
33,760,830
  • $3.63 ▲ 0.69%
32,148,671
  • $17.61 ▲ 0.57%
As of 9/17/2014, 04:15 PM

Find a Credit Card

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