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5 Reasons Why Investors Bancorp (ISBC) Stock is a Must Buy
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It seems to be a wise idea to add Investors Bancorp, Inc. stock to your portfolio amid the coronavirus crisis, given the strength in fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance-sheet position.
Further, analysts are bullish on the stock. Over the past 30 days, the Zacks Consensus Estimate for earnings moved 12% and 15.9% upward for 2020 and 2021, respectively. Also, the company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Investors Bancorp have gained 21.5% in the past six months compared with the industry's 33.6% rally.
Factors That Make Investors Bancorp a Solid Pick
Earnings Growth: Over the past three to five years, Investors Bancorp has recorded earnings growth of 9.4%. This momentum is likely to continue in the near term as well, reflected by the projected earnings growth rate of 9.1% for 2020 and 13.1% for 2021.
Moreover, the company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters and missed in the other. It has an average trailing four-quarter earnings surprise of 9.6%.
Revenue Strength: Investors Bancorp’s total net revenues have witnessed a compounded annual growth rate (CAGR) of 3.1% over the last five years (2015-2019). This uptick primarily resulted from a steady rise in total interest income. In addition, the company’s sales are projected to be up 5.6% in 2020 (against the projection of nil growth for the industry) and 5.9% in 2021.
Robust Capital Deployment: Investors Bancorp’s capital-deployment activities are impressive. Since 2016, the company has been increasing its dividend annually. Considering yesterday’s closing price of $9.59 per share, the company's dividend yield currently stands at 12.51%. Given the decent earnings strength, the company will likely be able to sustain capital-deployment plans.
Stock Looks Undervalued: Investors Bancorp currently looks undervalued, with respect to the price/earnings (P/E) (F1) and price/book (P/B) ratios. It has a P/E (F1) ratio of 11.49, which is below the industry average of 12.87. Also, the company’s P/B ratio of 0.91 is lower than the industry average of 0.93.
Superior ROE: Investors Bancorp’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 7.73% compares favorably with the industry’s 7.30%, reflecting that it is more efficient in using shareholder funds than its peers.
Flagstar Bancorp, Inc.’s Zacks Consensus Estimate for the current-year earnings moved 36.1% north to $8.98 per share in the past month. The stock currently sports a Zacks Rank of 1.
Great Southern Bancorp, Inc.’s (GSBC - Free Report) Zacks Consensus Estimate for earnings moved up 9.7% to $3.86 in 30 days for 2020. The stock currently flaunts a Zacks Rank of 1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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5 Reasons Why Investors Bancorp (ISBC) Stock is a Must Buy
It seems to be a wise idea to add Investors Bancorp, Inc. stock to your portfolio amid the coronavirus crisis, given the strength in fundamentals and solid prospects. Moreover, the company’s steady capital-deployment activities reflect a strong balance-sheet position.
Further, analysts are bullish on the stock. Over the past 30 days, the Zacks Consensus Estimate for earnings moved 12% and 15.9% upward for 2020 and 2021, respectively. Also, the company currently sports a Zacks Rank #1 (Strong Buy).
Shares of Investors Bancorp have gained 21.5% in the past six months compared with the industry's 33.6% rally.
Factors That Make Investors Bancorp a Solid Pick
Earnings Growth: Over the past three to five years, Investors Bancorp has recorded earnings growth of 9.4%. This momentum is likely to continue in the near term as well, reflected by the projected earnings growth rate of 9.1% for 2020 and 13.1% for 2021.
Moreover, the company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in three of the last four quarters and missed in the other. It has an average trailing four-quarter earnings surprise of 9.6%.
Revenue Strength: Investors Bancorp’s total net revenues have witnessed a compounded annual growth rate (CAGR) of 3.1% over the last five years (2015-2019). This uptick primarily resulted from a steady rise in total interest income. In addition, the company’s sales are projected to be up 5.6% in 2020 (against the projection of nil growth for the industry) and 5.9% in 2021.
Robust Capital Deployment: Investors Bancorp’s capital-deployment activities are impressive. Since 2016, the company has been increasing its dividend annually. Considering yesterday’s closing price of $9.59 per share, the company's dividend yield currently stands at 12.51%. Given the decent earnings strength, the company will likely be able to sustain capital-deployment plans.
Stock Looks Undervalued: Investors Bancorp currently looks undervalued, with respect to the price/earnings (P/E) (F1) and price/book (P/B) ratios. It has a P/E (F1) ratio of 11.49, which is below the industry average of 12.87. Also, the company’s P/B ratio of 0.91 is lower than the industry average of 0.93.
Superior ROE: Investors Bancorp’s trailing 12-month return on equity (ROE) highlights its growth potential. The company’s ROE of 7.73% compares favorably with the industry’s 7.30%, reflecting that it is more efficient in using shareholder funds than its peers.
Other Stocks to Consider
Banner Corporation's (BANR - Free Report) Zacks Consensus Estimate for 2020 earnings moved 12.3% upward to $3.11 in the past 30 days. The stock currently flaunts a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Flagstar Bancorp, Inc.’s Zacks Consensus Estimate for the current-year earnings moved 36.1% north to $8.98 per share in the past month. The stock currently sports a Zacks Rank of 1.
Great Southern Bancorp, Inc.’s (GSBC - Free Report) Zacks Consensus Estimate for earnings moved up 9.7% to $3.86 in 30 days for 2020. The stock currently flaunts a Zacks Rank of 1.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>