Shares of BOK Financial Corporation BOKF crafted a new 52-week high, touching $70.77 on Jun 25. However, the stock of this Oklahoma-based bank closed the session at $70.53, reflecting a solid return of 19% year to date. The trading volume for the session was more than 209,676 shares.
Despite hitting its 52-week high, this Zacks Rank #3 (Hold) stock has plenty of upside left, given the estimate revisions it witnessed over the last 30 days. Further, the long-term expected EPS growth rate now stands at 10%.
Growth Driver
BOK Financial Corporation’s continued strong capital position was reflected when it disclosed the results of its annual Dodd-Frank Act Stress Test (DFAST) on Jun 17. Under DFAST a bank is required to perform a stress test to estimate the soundness of its financial position considering a hypothetical adverse macroeconomic scenario provided by the Federal Reserve and the Office of the Comptroller of the Currency.
The disclosure includes BOK Financial’s minimum projected capital ratios under the severely adverse economic scenario for the period of nine quarters, beginning fourth quarter of 2014 to the fourth quarter of 2016. The company’s Tier 1 common equity ratio, calculated under Basel I, is projected to decline from 13.55% as of Sep 30, 2014 to 11.60 % (Basel III) on Dec 31, 2016. Further, Tier 1 risk based ratio, is estimated to decline from 13.72% (Basel I) as of Sep 30, 2014 to 11.76 % (Basel III) on Dec 31, 2016.
Notably, under the scenario provided by the regulatory authorities, all capital ratios well exceed the minimum regulatory requirements.
Estimate Revisions
Over the last 30 days, the Zacks Consensus Estimate for 2015 increased slightly to $4.42 per share. Also for 2016, it moved north nearly 1% to $4.84 per share.
Some better-ranked stocks in the finance space include Territorial Bancorp Inc. TBNK, HomeStreet, Inc. HMST and Heartland Financial USA, Inc. HTLF. All three stocks sport a Zacks Rank #1(Strong Buy).
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