HomeMost PopularInvestingHere Are 5 Reasons to Bet on Orange County (OBT) Right Now

Here Are 5 Reasons to Bet on Orange County (OBT) Right Now

Actionable Trade Ideas

always free

Orange County Bancorp, Inc. (OBT) is a compelling investment choice due to its impressive earnings and revenue growth, as well as its strong liquidity position which supports consistent capital distribution.

Analysts have revised their estimates for OBT’s 2023 and 2024 earnings upwards by 10% and 12.7% respectively, indicating optimism about the company’s future earnings potential. OBT currently has a Zacks Rank #2 (Buy).

Over the past three months, OBT’s stock has outperformed the industry, gaining 24.8% compared to industry growth of 0.9%. This positive performance is driven by several factors.

Zacks Investment Research
Image Source: Zacks Investment Research

Earnings Growth

OBT’s earnings per share have experienced a compound annual growth rate (CAGR) of 20.06% over the past three years, and this growth is expected to continue in the near future. Its earnings are projected to rise 21.7% in 2023. OBT also has a strong track record of exceeding earnings expectations, with the average surprise being 31.12% in the past four quarters.

Revenue Strength

OBT’s revenues have seen a CAGR of 18.7% over the past three years, driven by a solid loan portfolio and efforts to increase fee income. Higher interest rates have also positively impacted OBT’s top line since 2022. With ongoing loan demand and rising fee income, revenues are expected to grow by 8.9% in 2023.

Decent Capital Distribution Activities

Orange County Bancorp regularly pays out quarterly dividends, with a recent hike of 15% to 23 cents per share. The company announced a cash dividend of 23 cents per share on August 17, which was paid out on September 15, 2023, to shareholders of record as of September 4.

Superior Return on Equity (ROE)

OBT boasts a trailing 12-month ROE of 23.25%, surpassing the industry average of 11.77%. This indicates that OBT is more efficient in utilizing shareholders’ funds compared to its peers.

Favorable Valuation

OBT stock has a Value Score of B, according to Zacks research. Stocks with a Value Score of A or B, combined with a Zacks Rank #1 or 2, have historically shown the best potential for upside.

Other Promising Bank Stocks to Consider

If you’re looking for other investment opportunities in the banking sector, consider The Bancorp (TBBK) and Northeast Community Bancorp (NECB). The Zacks Consensus Estimate for The Bancorp’s current-year earnings has been revised 1.4% higher over the past 60 days, and its shares have gained 7.1% in the past three months. Northeast Community Bancorp has a Zacks Rank #1 and its earnings estimate for 2023 has been revised 10% upwards in the past 60 days. Over the past three months, NECB shares have rallied 6.3%.

Click here to see the complete list of today’s top-ranked stocks according to Zacks.

Don’t Miss Out on These 5 Stocks Set to Double

Zacks experts have identified five stocks that have the potential to double in 2023. Previous recommendations from Zacks have achieved impressive returns, with some gaining over 600%. These stocks present an opportunity to get in early on the ground floor.

Today, See These 5 Potential Home Runs >>

Download the 7 Best Stocks for the Next 30 Days for free to get the latest recommendations from Zacks Investment Research.

Zacks Investment Research

Read the original article on Zacks.com

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

Swing Trading Ideas and Market Commentary

Need some new swing ideas? Get free weekly swing ideas and market commentary from Jonathan Bernstein here: Swing Trading.

Explore More

Weekly In-Depth Market Analysis and Actionable Trade Ideas

Get institutional-level analysis and trade ideas to take your trading to the next level, sign up for free and become apart of the community.