Preferred Bank Hits New 52-Week High - Analyst Blog

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Shares of Preferred Bank ( PFBC ) achieved a new 52-week high, touching $17.88 at the end of the trading session on Aug 7. The closing price of this regional bank reflected a solid year-to-date return of 18.4%. The trading volume for the session was 0.1 million shares.

Despite the strong price appreciation, this Zacks Rank #1 (Strong Buy) stock has plenty of upside left, given its estimate revisions over the past 30 days and expected long-term earnings growth of 10.0%.

Growth Drivers


Impressive second-quarter 2013 results, including a positive earnings surprise of 18.5%, improved loan and deposit balances, stable capital position and enhanced credit quality were the primary growth drivers for Preferred Bank.

On Jul 17, Preferred Bank reported second-quarter earnings per share of 32 cents, surpassing the Zacks Consensus Estimate by a nickel. Moreover, the earnings were higher than the prior-year quarter loss of 43 cents.

The better-than-expected results were primarily driven by a surge in net-interest income and lower operating expenses, partially offset by declining non-interest income.

Additionally, Preferred Bank has delivered positive earnings surprises in all of the past 4 quarters with an average beat of 24.4%.

Estimate Revisions

For Preferred Bank, over the last 30 days, both the estimates for 2013 have been revised upward, raising the Zacks Consensus Estimate by nearly 9% to $1.24 per share. For 2014, based on the same number of estimate revisions, the Zacks Consensus Estimate moved north by 6% to $1.32 per share, over the same time frame.

While we recommend Preferred Bank, other banks with the same Zacks rank include Enterprise Financial Services Corp. ( EFSC ), Firstbank Corporation ( FBMI ) and First Interstate Bancsystem Inc. ( FIBK ).



ENTERPRISE FINL (EFSC): Free Stock Analysis Report

FIRSTBANK ALMA (FBMI): Free Stock Analysis Report

FIRST INTST MT (FIBK): Free Stock Analysis Report

PREFERRED BANK (PFBC): Free Stock Analysis Report

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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: EFSC , FBMI , FIBK , PFBC

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