) 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%.
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
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.
First Interstate Bancsystem Inc.
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PREFERRED BANK (PFBC): Free Stock Analysis
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