On Jul 6, Zacks Investment Research upgraded Cape Bancorp, Inc. (CBNJ) to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Cape Bancorp has been witnessing rising earnings estimates on the back of strong first-quarter 2013 results. Moreover, this well-known various business and personal banking products and services provider delivered positive earnings surprises in 3 of the last 4 quarters with an average beat of 36.5%.
Cape Bancorp reported its first-quarter results on Apr 19 with earnings per share of 12 cents, beating the Zacks Consensus Estimate of 7 cents by 71.4%. Robust results for the reported quarter were primarily aided by substantial reduction in provision for loan losses. Moreover, the company reflected a strong capital position and a marked improvement in credit quality.
As of Mar 31, 2013, total net loans stood at $720.6 million, up from $714.4 million in the prior quarter. Core deposits totaled $544.0 million, representing a hike of $1.6 million sequentially.
Reduced net interest and non-interest income along with undisciplined expense management were on the downside. Therefore, efficiency ratio deteriorated to 73.18% from 70.74% in the prior quarter.
Following first-quarter 2013 results, the Zacks Consensus Estimate for 2013 jumped 13.3% to 34 cents per share over the last 60 days. For 2014, the Zacks Consensus Estimate surged 9.4% to 35 cents per share over the same time frame.
Other Stocks to Consider
Besides Cape Bancorp, other stocks in the same sector that are worth considering include Banner Corporation (BANR), First PacTrust Bancorp, Inc. (BANC) and Westfield Financial Inc. (WFD). All the 3 companies carry a Zacks Rank #1.
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