On Jan 5, 2015, we issued an updated research report on CIT Group Inc. (CIT). We expect the company’s restructuring initiatives and a continued rise in earning assets to drive growth going forward.
CIT Group has been restructuring its business operations, given the changes in the operating environment. Apart from re-organizing its segments, the company is making efforts toward lowering the Non-Strategic Portfolios.
Notably, CIT Group has exited all the less profitable countries in Asia, and a number of countries in Latin America and Europe too. Also, the company has plans to exit from the remaining countries in Europe and Latin America. These initiatives, upon completion, are expected to reduce roughly $60 million of operating expenses on an annual basis.
However, sluggish growth in the industries where CIT Group provides finance, along with stringent regulations, is expected to dent the company’s performance in the upcoming quarters.
Analysts have been expressing mixed sentiments for CIT Group. Over the past 30 days, the Zacks Consensus Estimate for 2014 fell nearly 1% to $3.37 per share, while for 2015 it inched up 1.4% to $3.69 per share.
CIT Group currently carries a Zacks Rank #2 (Buy).
Stocks That Warrant a Look
Some other finance stocks worth considering include Ladder Capital Corp (LADR), FleetCor Technologies, Inc. (FLT) and Ares Capital Corporation (ARCC). All these stocks sport a Zacks Rank #1 (Strong Buy).
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