On Dec 26, Zacks Investment Research upgraded
SVB Financial Group
) to a Zacks Rank #1 (Strong Buy).
BOFI HLDG INC (BOFI): Free Stock Analysis
BANK OF HAWAII (BOH): Free Stock Analysis
SVB FINL GP (SIVB): Free Stock Analysis
TRICO BANCSHRS (TCBK): Free Stock Analysis
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Why the Upgrade?
SVB Financial has been witnessing rising earnings estimates on
the back of strong third-quarter 2013 results and an enhanced
guidance for 2013 as well as 2014. Moreover, this financial
services provider delivered positive earnings surprises in the
last 4 quarters with an average beat of 10.5%. The long-term
expected earnings growth rate for this stock is 10.3%.
SVB Financial reported third-quarter (ended Sep 30) results on
Oct 24. Earnings per share of $1.46 beat the Zacks Consensus
Estimate by a penny. Results also compared favorably with 94
cents earned in the year-ago quarter.
SVB Financial's total revenue came in at $443.0 million, growing
91.7% from $231.1 million in the prior-year quarter.
We observe that SVB Financial has an impressive growth history,
with consistent improvement on the organic front. Moreover,
consistent growth in loans and deposits are other positives.
The analysts are bullish on the stocks mainly due to the positive
guidance provided by management. Management anticipates Net
Interest Income growth in low double-digits in 2013 and high
single-digits in 2014. Further, core fee income is expected to
grow in high single-digits in 2013 and low double-digits in 2014.
The Zacks Consensus Estimate for 2013 increased marginally to
$4.53 per share over the last 60 days. For 2014, the estimate
rose 1.2% to $4.37 over the same time frame.
Other Stocks to Consider
Other West-Banks worth considering include
BofI Holding, Inc.
Bank of Hawaii Corporation
). While BofI Holding and TriCo Bancshares carry the same Zacks
Rank as SVB Financial, Bank of Hawaii holds a Zacks Rank #2