On Mar 24, 2015, Zacks Investment Research upgraded Fifth Third Bancorp FITB to a Zacks Rank #3 (Hold) from a Zacks Rank #4 (Sell).
Why the Upgrade?
Earlier this month, Fifth Third received approval from the Federal Reserve for its proposed capital actions from Apr 1, 2015 through Jun 30, 2016. These were included in its capital plan submitted in January under the 2015 Comprehensive Capital Analysis and Review (CCAR) process. Also, this major regional bank’s earnings are expected to grow at the rate of 5% over the long term.
Further, Fifth Third's fourth-quarter 2014 earnings per share, reported on Jan 21, came in at 43 cents, marginally beating the Zacks Consensus Estimate of 42 cents. Results were aided by lower expenses, partially offset by decreased revenues and higher provisions for loan and lease losses. Improved loan and deposit balances and a strong capital position were among the other positives.
Fifth Third’s deposit balances represent an important source of funding and revenue growth opportunity. The company continues to focus on core deposit growth in its retail and commercial franchises by improving customer satisfaction, building full relationships and offering competitive rates. Notably, Fifth Third’s total deposits recorded a 5-year CAGR of 5.7% in 2014.
The Zacks Consensus Estimate over the past 30 days remained stable at $1.64 and $1.82 for 2015 and 2016, respectively.
Key Picks from the Sector
Some better-ranked finance stocks include Citigroup Inc. C, Huntington Bancshares Incorporated HBAN and Northern Trust Corporation NTRS. All three carry a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment