Chicago, IL – October 9, 2024 – Stocks in this week’s article are Coastal Financial Corp. CCB, Esquire Financial Holdings, Inc. ESQ and Mercantile Bank Corp. MBWM.
3 Bank Stocks Exhibiting Superb Earnings Growth
Banks may have kicked off the third-quarter earnings parade, but the fourth quarter bodes well for them. After all, the recent interest rate cuts by the Federal Reserve are expected to boost economic activities, spur dealmaking, and enhance financial transactions, like credit card usage. As a result, the fourth-quarter earnings for the Banks & Thrifts industry are projected to be up +18.3% from a year ago on +3% higher revenues (read more: Are Bank Stocks a Buy Ahead of Quarterly Results?).
Hence, it is vital to keep tabs on Coastal Financial Corp., Esquire Financial Holdings, Inc. and Mercantile Bank Corp. from the Banks &Thrifts industry, which are showcasing solid earnings growth at the moment.
Earnings Estimates & Share Price Movements
Frequently, we have seen a decline in the stock price despite earnings growth and a rally in price following an earnings decline. This is largely the result of a company’s earnings failing to meet market expectations.
Earnings estimates embody analysts’ opinions on factors such as sales growth, product demand, competitive industry environment, profit margins, and cost control. Thus, earnings estimates serve as a valuable tool, while making investment decisions. Earnings estimates also help analysts assess the cash flow to determine the fair value of a firm.
Thus, investors should watch for stocks set to surge. Investors need to buy stocks with historical earnings growth and witnessing a rise in quarterly and annual earnings estimates.
We use that basis to determine our stock selections using Zack’s Research Wizard Tool.
The above criteria narrowed the universe of around 7,839 stocks to only 24. Here are the three bank stocks:
Coastal Financial
Coastal Financial, a bank holding company, offers services such as checking and savings accounts, loans, cards, and Internet banking through its subsidiaries.
CCB currently has a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for CCB’s current-year earnings has increased 0.6% over the past 60 days. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
Esquire Financial
Esquire Financial, a bank holding company, offers banking services to law professionals, service firms, businesses, and individuals in the United States.
ESQ currently has a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for ESQ’s current-year earnings has increased 0.2% over the past 60 days.
Mercantile Bank
Mercantile Bank offers a wide range of banking products and services to businesses and consumers in Grand Rapids and Kent County, creating a friendly hometown banking experience.
MBWM currently has a Zacks Rank #3. The Zacks Consensus Estimate for MBWM’s current-year earnings has increased 0.2% over the past 60 days.
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For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2347806/3-bank-stocks-exhibiting-superb-earnings-growth
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