It seems to be a wise idea to add Carolina Financial CorporationCARO stock to your portfolio now, given its underlying strength and good growth prospects.
Moreover, the company's Zacks Consensus Estimate for the current-year earnings has been revised 5.6% upward over the last 30 days, reflecting analysts' optimism regarding its earnings growth potential. As a result, the stock currently carries a Zacks Rank #2 (Buy).
Also, the company's price performance seems impressive. Its shares jumped 30.3% in the past year, outperforming 6.2% growth of the industry .
Given the positive estimate revision and a solid Zacks Rank, the stock is expected to gain further.
Carolina Financial has a number of other aspects that make it an attractive investment option.
Earnings per Share (EPS) Growth : In the last three-five years, Carolina Financial witnessed EPS growth of 27.5%, significantly higher than the industry average of 9.6%. Also, it has an impressive earnings surprise history, having delivered positive surprises in three of the trailing four quarters with an average beat of 6.2%.
The upward trend in earnings is expected to continue in the near term as well. The projected EPS growth for 2018 and 2019 are 39.7% and 11.1%, respectively.
Revenue Strength : Carolina Financial's revenues have increased at a CAGR of 29.8% in the last four years (2014-2017). Also, the top line is expected to grow nearly 47.8% in 2018, much higher than the industry average of 2.9%. This indicates its superiority in generating revenues.
Strong Leverage : Carolina Financial's debt/equity ratio is 0.15, which compares favorably with the industry average of 0.26. This indicates a lower debt burden relative to the industry and it highlights the financial stability of the company, even in an unstable economic environment.
Superior Return on Equity (ROE) : Carolina Financial's ROE is 10.36% compared with the industry average of 8.58%, reflecting its commendable position over the peers.
Other Stocks to Consider
Some other top-ranked stocks in the same space are Hancock Holding Company HBHC , American National Bankshares Inc. AMNB and Triumph Bancorp, Inc. TBK , each carrying a Zacks Rank #2. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
In the last 60 days, Hancock Holding witnessed a marginal upward earnings estimate revision for the current year. Its share price increased 11.5% in the past year.
For the current year, the Zacks Consensus Estimate of American National was revised 1% upward in the last 60 days. Its share price increased 2.4% in the past year.
In the last 60 days, Triumph Bancorp witnessed an upward earnings estimate revision of nearly 1% for the current year. Its share price increased 54.1% in the past year.
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Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican National Bankshares, Inc. (AMNB): Free Stock Analysis ReportCarolina Financial Corporation (CARO): Free Stock Analysis ReportTriumph Bancorp, Inc. (TBK): Free Stock Analysis ReportHancock Holding Company (HBHC): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment Research