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4 Reasons to Invest in Carolina Financial (CARO) Stock Now


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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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American National Bankshares, Inc. (AMNB): Free Stock Analysis Report

Carolina Financial Corporation (CARO): Free Stock Analysis Report

Triumph Bancorp, Inc. (TBK): Free Stock Analysis Report

Hancock Holding Company (HBHC): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Business , Stocks
Referenced Symbols: AMNB , CARO , TBK ,



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