On January 1, Zacks Investment Research downgraded Itau
Unibanco Holding S.A. ( ITUB )
to a Zacks #5 Rank (Strong Sell).BANNER CORP (BANR): Free Stock Analysis ReportBLACKSTONE GRP (BX): Free Stock Analysis ReportBANCO ITAU -ADR (ITUB): Free Stock Analysis
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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
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)