Preferred Bank Hits New 52-Week High - Analyst Blog


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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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: EFSC , FBMI , FIBK , PFBC

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