From the vast universe of banking stocks, today we pick Mackinac Financial Corporation (NASDAQ:MFNC) for you. The company offers a profitable investment opportunity based on steady revenue growth and robust fundamentals.
It has been witnessing upward estimate revisions, reflecting analysts’ optimism about its earnings growth potential. In the past 30 days, the Zacks Consensus Estimate for 2019 has displayed an upward trend.
Further, this Zacks Rank #2 (Buy) stock has gained 4.7% year to date compared with the industry’s growth of 4.6%.
Why Mackinac Financial is an Attractive Pick
Earnings per Share Growth: In the last 3-5 years, Mackinac Financial witnessed EPS growth of 24.77%. Further, its projected EPS growth of 10.66% promises rewards for shareholders. In addition, the company delivered an average positive earnings surprise of 8.47%, over the last four quarters.
Revenue Strength: Mackinac Financial continues to witness top-line improvement. Since 2014, the company has recorded consistent increase in sales, witnessing five-year compound annual growth rate (CAGR) of nearly 17.9% in 2018.
The company’s projected sales growth (F1/F0) of 17.44% (against the industry average of 6.57%) indicates constant upward momentum in revenues.
Strong Leverage: Mackinac Financial’s debt/equity ratio is 0.29 compared with the industry average of 0.39, indicating a relatively lower debt burden. It highlights the financial stability of the company even in an unstable economic environment.
Stock Looks Undervalued: The stock currently has a Value Score of A. The Value Score condenses all valuation metrics into one actionable score that helps investors steer clear of “value traps” and identify stocks that are truly trading at a discount. Our research shows that stocks with a Style Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.
Other Stocks to Consider
T. Rowe Price Group, Inc. (NASDAQ:TROW) has been witnessing upward estimate revisions for the past 60 days. Moreover, this Zacks #1 Ranked (Strong Buy) stock has rallied more than 18%, year to date. You can see the complete list of today’s Zacks #1 Rank stocks here.
Artisan Partners Asset Management Inc. (NYSE:APAM) has been witnessing upward estimate revisions for the past 60 days. Further, the company’s shares have gained 18.4%, year to date. At present, it carries a Zacks Rank of 2 (Buy).
Ameriprise Financial, Inc. (NYSE:AMP) has been witnessing upward estimate revisions for the past 60 days. Additionally, the stock has jumped around 21.9%, year to date. It currently carries a Zacks Rank #2.
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T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report
Artisan Partners Asset Management Inc. (APAM): Free Stock Analysis Report
Ameriprise Financial, Inc. (AMP): Free Stock Analysis Report
Mackinac Financial Corporation (MFNC): Free Stock Analysis Report
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Zacks Investment Research