Breaking News
Investing Pro 0
💎 Reveal Undervalued Stocks Hiding in Any Market Get Started

4 Reasons To Buy ServisFirst Bancshares (SFBS) Stock Now

By Zacks Investment ResearchStock MarketsJun 12, 2017 08:51AM ET
www.investing.com/analysis/4-reasons-to-buy-servisfirst-bancshares-(sfbs)-stock-now-200194597
4 Reasons To Buy ServisFirst Bancshares (SFBS) Stock Now
By Zacks Investment Research   |  Jun 12, 2017 08:51AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
 
AAPL
-1.01%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
BFIN
+1.35%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
FBC
+0.00%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
SFBS
+0.78%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
CFG
-0.51%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

Improving operating backdrop and rising rate environment, along with the strengthening of domestic economy, should keep supporting performance of the banking stocks. Also, renewed optimism related to lesser regulations with the passage of the Financial Choice Act position bank stocks well.

Keeping these factors in mind, today we have picked ServisFirst Bancshares, Inc. (NASDAQ:SFBS) for you to consider. Headquartered in Birmingham, AL, the company is a profitable investment opportunity, driven by steady earnings growth. In fact, the company is witnessing upward estimate revisions, which raises analysts’ optimism about its prospects.

Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 rose 6% and 4.7%, respectively. Shares of this Zacks Rank #1 (Strong Buy) stock have rallied 5.7% over the last six months, as against the Zacks categorized Financial Savings & Loan industry’s decline of 2.9%.



There are a few other factors that make ServisFirst Bancshares a solid investment option.

Earnings Growth: ServisFirst Bancshares witnessed earnings growth of 29.5% in the last three to five years. This earnings momentum is likely to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate (F1/F0) of 17.11% compared with industry average of 6.5%.

Revenue Strength: ServisFirst Bancshares’ revenues witnessed a CAGR of 18% over the last five years (2012–2016). Driven by improving rate environment and rising loan demand, the company’s top line is expected to grow 19.8% in 2017 and 15.2% for 2018.

Strong Leverage: ServisFirst Bancshares’ debt/equity ratio is 0.10 compared with the industry average of 0.67. The relatively strong financial health of the company will help it perform better than its peers under a dynamic business environment.

Superior Return on Equity (ROE): ServisFirst Bancshares has an ROE of 15.29% better than the industry average of 6.56%. This shows that the company reinvests its cash more efficiently.

Other Stocks Worth a Look

Some other stocks worth considering in the same industry include Citizens Financial Group, Inc. (NYSE:CFG) , Flagstar Bancorp, Inc. (NYSE:FBC) and BankFinancial Corporation (NASDAQ:BFIN) . All three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Citizens Financial has witnessed an upward earnings estimate revision of 6.1% for the current year, over the past 60 days. Also, over the last six months, its share price rose 4.6%.

Flagstar Bancorp earnings estimates were revised 2.2% upward for the current year, in the past 60 days. Also, its share price increased 7.4% over the last six months.

BankFinancial recorded an upward earnings estimate revision of around 18% for the current year, in the past 60 days. Also, its share price has seen a jump of 5% over the last six months.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple (NASDAQ:AAPL) sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>



Flagstar Bancorp, Inc. (FBC): Free Stock Analysis Report

ServisFirst Bancshares, Inc. (SFBS): Free Stock Analysis Report

Citizens Financial Group, Inc. (CFG): Free Stock Analysis Report

BankFinancial Corporation (BFIN): Free Stock Analysis Report

Original post

Zacks Investment Research
4 Reasons To Buy ServisFirst Bancshares (SFBS) Stock Now
 

Related Articles

4 Reasons To Buy ServisFirst Bancshares (SFBS) Stock Now

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email