Northwest Bancshares, Inc.
) crafted a new 52-week high, touching $15.05 in the first hour
of the trading session on Dec 3. However, the stock closed the
session at $14.88, which reflects a solid year-to-date return of
24.2%. The trading volume for the session was around 1.2 million
Despite hitting its 52-week high, this Zacks Rank #2 (Buy) stock
has plenty of upside left, given its strong estimate revisions
over the last 60 days and expected long-term earnings growth of
Northwest Bancshares' impressive price performance came on the
back of its announcement to acquire a Pa.-based financial
advisory firm - Evans Capital Management, Inc. Also, strong
third-quarter 2013 results, which included a positive earnings
surprise of 18.75% and reduced provision for loan losses was a
Recently, Northwest Savings Bank, the subsidiary company of
Northwest Bancshares announced a deal to acquire Evans Capital
Management that currently holds assets under management and
administration worth $240 million. The deal is expected to close
by Jan 1, 2014.
The deal will aid Northwest Bancshares in expanding its wealth
management activities along with improved customer services.
After the acquisition, the company's assets under management and
administration will stand at around $2 billion.
On Oct 21, Northwest Bancshares reported its third-quarter 2013
earnings per share of 19 cents, beating the Zacks Consensus
Estimate by 3 cents. Moreover, this compared favorably with
earnings per share of 17 cents recorded in the year-ago quarter.
A year-over-year increase of 5.5% in non interest income and a
decline of 2.9% in non interest expenses were the tailwinds for
the quarter. Also, credit quality improved with provision for
loan losses and allowance for loan losses decreasing 27.8% and
6.6%, respectively, year over year. Further net charge-off rate
declined 29 basis points year over year to 0.12%.
However, a year-over-year decline of 4.8% in net interest income
and an increase of 1.8% in non accrual loans acted as the
headwinds for the quarter.
Estimate Revisions Show Potency
Over the last 60 days, all 3 estimates for 2013 have been revised
upward, lifting the Zacks Consensus Estimate by 6.3% to 68 cents
per share. The Zacks Consensus Estimate for 2014 advanced 3% to
68 cents per share as 2 out of 3 estimates moved north.
Some better-ranked Savings and Loan Institutes include I
nvestors Bancorp Inc.
Mutualfirst Financial Inc.
Teche Holding Company
). All these companies carry a Zacks Rank #1 (Strong Buy).
INVESTORS BANCP (ISBC): Free Stock Analysis
MUTUALFIRST FIN (MFSF): Free Stock Analysis
NORTHWEST BNCSH (NWBI): Free Stock Analysis
TECHE HOLDING (TSH): Free Stock Analysis
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