Shares of Chemical Financial Corporation touched a 52–week high of $43.73 during the first half of the trading session on Aug 10. The stock closed at $43.69, reflecting a solid return of 35.1% over the past year. The trading volume for the session was 0.4 million shares.

Due to the strong price appreciation and upward estimate revisions over the past 30 days, this stock holds a Zacks Rank #2 (Buy).

Growth Driver

The merger between Chemical Financial and Talmer Bancorp, Inc. , which is likely to strengthen Chemical Financial’s revenues and market share, acted as the primary growth driver.

On Aug 10, Chemical Financial received the regulatory approval from the Federal reserve and the State of Michigan Department of Insurance and Financial Services for the merger. The merger is expected to close on Aug 31, 2016, subject to customary closing conditions.

Earlier in Jan 2016, Chemical Financial announced that it has entered into a definitive agreement with Talmer in a cash and stock transaction, valued at approximately $1.1 billion. The combined organization will have approximately $16 billion in assets, $12 billion in loans and $13 billion in
deposits with 266 locations primarily in Michigan and northeast Ohio.

Notably, the merger is expected to result in 8% EPS accretion for Chemical Financial in the first full year of completion.

Estimate Revisions

Over the last 30 days, the Zacks Consensus Estimate for 2016 increased 2.2% to $2.76 per share. For 2017, the Zacks Consensus Estimate inched up 0.7% to $3.06 per share over the same time frame.

Key Picks in the Sector

Other favorably-ranked Midwest Banks include Enterprise Financial Services Corp. (EFSC Quick QuoteEFSC - Free Report) and First Midwest Bancorp Inc. , each sporting a Zacks Rank #1 (Strong Buy).

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