Shares of BofI Holding, Inc. (BOFI) achieved a new 52-week high, reaching $87.36 in the second half of the trading session on Feb 18. Notably, the stock closed the session at $86.80, which reflects a solid year-to-date return of 14.3%. The trading volume for the session was 0.2 million shares.
Despite the strong price appreciation, this Zacks Rank #2 (Buy) stock has plenty of upside left, given its strong estimate revisions over the last 30 days.
Growth Drivers
Impressive fiscal second-quarter 2014 (ended Dec 31) results that reflected an earnings surprise of 6.7%, along with improvement in loan and deposit balances were the primary growth drivers for BofI Holding.
On Feb 5, BofI Holding reported fiscal second-quarter results. The company’s core earnings of 96 cents per share outpaced the Zacks Consensus Estimate of 90 cents and were also higher than the year-ago quarter figure of 73 cents. Results benefited from a rise in net interest income and lower provision for loan losses, partially offset by a fall in non-interest income and higher operating expenses.
Estimate Revisions Show Potency
Over the last 30 days, 2 out of 3 estimates for fiscal 2014 have been revised upward, lifting the Zacks Consensus Estimate by roughly 2.4% to $3.77 per share. For fiscal 2015, 2 of 3 estimates moved north over the same time frame, causing the Zacks Consensus Estimate to rise 2.9% to $4.55 per share.
Some better-ranked stocks in the finance sector include Summit State Bank (SSBI), Western Alliance Bancorporation (WAL) and Preferred Bank (PFBC). All of these carry a Zacks Rank #1 (Strong Buy).
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