On Jun 26, 2014, we issued an updated research report on
). This Delaware based financial institution is poised to
grow independently following the separation of SLM Corporation into
two distinct publicly-traded entities on Apr 30, 2014.
Following the spin-off, Sallie Mae will be able to primarily focus
on the growing consumer banking business offering private education
loans, saving and insurance products for higher education. We
believe the gradual economic recovery and declining unemployment
rate should further enhance the prospects of the consumer banking
Sallie Mae's operations are more dependent on students' demand for
educational loans, which is expected to be fairly strong in the
foreseeable future. This expectation, combined with increasing
tuition costs, should drive solid growth for Sallie Mae in the
Nevertheless, we remain cautious owing to several issues that the
new entity is encountering. These include a competitive environment
in the saturated banking space, absence of large scale benefits and
the prevailing stringent regulatory landscape.
Analysts' mixed stance on the stock was reflected in the movement
of the Zacks Consensus Estimate over the past 30 days. For 2014,
the Zacks Consensus Estimate fell nearly 2% to 50 cents per share
while it remained stable at 63 cents per share for 2015.
Sallie Mae currently carries a Zacks Rank #3 (Hold).
Cash America International, Inc.
Westfield Financial Inc.
Astoria Financial Corporation
) are among the better-ranked stocks in the finance sector. All
these stocks sport a Zacks Rank #1 (Strong Buy).
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SLM CORP (SLM): Free Stock Analysis Report
CASH AM INTL (CSH): Free Stock Analysis Report
WESTFIELD FINL (WFD): Free Stock Analysis
ASTORIA FINL CP (AF): Free Stock Analysis
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