Boosted Fourth Quarter Earnings Expected
Recent Fed rate cuts are anticipated to stimulate economic activities, mergers, and financial transactions, like credit card usage. This led to a projected +18.3% earnings increase in the Banks & Thrifts industry for the fourth quarter compared to a year ago.
Stock prices can fluctuate despite earnings growth due to market expectations. Analysts use earnings estimates to evaluate factors like sales growth and profit margins, aiding in investment decisions.
Investors are advised to look for stocks with consistent historical earnings growth and positive quarterly estimates.
Criteria for Selecting Promising Bank Stocks
Utilizing the Zacks Research Wizard Tool, we identified stocks meeting the following criteria:
- Zacks Rank <= 3
- 5-Year EPS Growth (%) greater than X-Industry
- % Change EPS F(0)/F(-1) >= 5
- % Change Q1 Estimates last 4 weeks > 0
- % Change F1 Estimates last 1 week > 0
- % Change F1 Estimates last 4 weeks > 0
Key Bank Stocks to Watch
1. Coastal Financial (CCB)
Offering various banking services, Coastal Financial holds a Zacks Rank #2. Their current-year earnings estimate increased by 0.6% in the last 60 days.
2. Esquire Financial (ESQ)
Catering to law professionals and businesses, Esquire Financial holds a Zacks Rank #3 with a 0.2% increase in their current-year earnings estimate over the past 60 days.
3. Mercantile Bank Corporation (MBWM)
Serving businesses and consumers in Grand Rapids and Kent County, Mercantile Bank holds a Zacks Rank #3. Their current-year earnings estimate grew by 0.2% in the past 60 days.
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