Prosperity Hits A New 52-Week High - Analyst Blog

By
A A A

Shares of Prosperity Bancshares Inc. ( PB ) reached a new 52-week high, touching $52.38 in the second half of the trading session on Jun 27, 2013. The closing price of this regional bank reflected a robust year-to-date return of 20.8%. The trading volume for the session was 0.4 million shares, higher than the average of 0.3 million over the last 3 months.

Despite the strong price appreciation, this Zacks Rank #3 (Hold) stock has plenty of upside left, given its estimate revisions over the last 90 days for 2013 and expected long-term earnings growth of 8.3%.

Growth Drivers

Impressive first-quarter 2013 results, strong capital position, together with a long history of acquisitions were the primary growth drivers for Prosperity.

Prosperity's first-quarter earnings marginally beat the Zacks Consensus Estimate. Results benefited from growth in top line, partially offset by a rise in operating expenses. An improvement in loan and deposit balances as well as stable capital and profitability ratios were among the positives.

Further, over the years, Prosperity has grown through acquiring banks and branches. This year, the company acquired 2 firms - Coppermark Bancshares, Inc. and East Texas Financial Services Inc.

Estimate Revisions

Over the last 90 days, for 2013, the Zacks Consensus Estimate moved north by 1.2% to $3.50 per share. Notably, for 2014, the Zacks Consensus Estimate remained stable at $3.57 per share, over the same time period.

Better performing banks include BOK Financial Corporation ( BOKF ), First Financial Bankshares Inc. ( FFIN ) and International Bancshares Corporation ( IBOC ), all of which carry a Zacks Rank #2 (Buy).



BOK FINL CORP (BOKF): Free Stock Analysis Report

FIRST FIN BK-TX (FFIN): Free Stock Analysis Report

INTL BANCSHARES (IBOC): Get Free Report

PROSPERITY BCSH (PB): Free Stock Analysis Report

To read this article on Zacks.com click here.

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: BOKF , FFIN , IBOC , PB

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Stocks

Referenced

100%
50%
100%
100%

Most Active by Volume

33,110,376
  • $113.99 ▲ 1.77%
25,034,179
    $17.98 unch
24,486,872
  • $7.41 ▲ 2.07%
20,864,535
  • $7.39 ▼ 2.76%
18,600,501
  • $8.30 ▼ 0.36%
17,530,211
  • $8.14 ▲ 3.17%
17,299,208
  • $93.79 ▲ 2.74%
14,669,760
  • $25.78 ▼ 0.19%
As of 12/26/2014, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com