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5 Reasons to Add Comerica (CMA) to Your Portfolio Right Now
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Improving operating backdrop, rising rate environment and strengthening domestic economy are anticipated to continue supporting banking stocks. Keeping this in mind, we have selected Comerica Incorporated (CMA - Free Report) for your consideration.
Comerica is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 inched up 1.5% and 1.3%, respectively.
Further, shares of this Zacks Rank #2 (Buy) stock have gained around 17.3% in six months’ time, outperforming 15.1% growth recorded by the industry.
Notably, Comerica has a number of other aspects that make it an attractive investment option.
Why is Comerica an Attractive Pick
Revenue Strength: Comerica continues to make steady progress toward improving its top line. Sales witnessed a 4.3% compounded annual growth rate (CAGR) over the last four years (2013-2016). Also, the company’s projected sales growth (F1/F0) of 10.8% (as against the industry average of about 5.99%) indicates constant upward momentum in revenues.
Earnings Growth: Comerica has witnessed earnings growth of 5.1% in the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 9% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 10.1% over the trailing four quarters.
Prudent Expense Management: Comerica remains on track to achieve its $125-million cost-savings target for 2017 through the GEAR Up initiative. Expenses decreased in the first nine months of 2017. Moreover, the company’s focus on driving long-term efficiency through the GEAR Up initiative keeps us optimistic. Such initiatives are anticipated to deliver annual pre-tax income of about $270 million by the year-end 2018, and additional benefits in pre-tax income of $35 million in 2019 and beyond.
Strong Leverage: Comerica’s debt/equity ratio is valued at 0.58 compared to the industry average of 0.88, indicating relatively lower debt burden. It also highlights the financial stability of the company despite an unstable economic environment.
Superior Return on Equity (ROE): Comerica’s ROE of 10.35% compared with the industry average of 10.29% highlights the company’s commendable position over its peers.
Stocks to Consider
Federated Investors, Inc. has been witnessing upward estimate revisions for the past 30 days. In six months’ time, the company’s share price has been up more than 26%. It carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enterprise Financial Services Corporation (EFSC - Free Report) has been witnessing upward estimate revisions for the last two months. Additionally, the stock moved up more than 3% over the past six months. It currently carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past month. Also, the company’s shares have risen nearly 33.8% in six months’ time. It also holds a Zacks Rank of 2, at present.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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5 Reasons to Add Comerica (CMA) to Your Portfolio Right Now
Improving operating backdrop, rising rate environment and strengthening domestic economy are anticipated to continue supporting banking stocks. Keeping this in mind, we have selected Comerica Incorporated (CMA - Free Report) for your consideration.
Comerica is one such stock that has been witnessing upward estimate revisions, reflecting analysts’ optimism about its future prospects. Over the last 60 days, the Zacks Consensus Estimate for 2017 and 2018 inched up 1.5% and 1.3%, respectively.
Further, shares of this Zacks Rank #2 (Buy) stock have gained around 17.3% in six months’ time, outperforming 15.1% growth recorded by the industry.
Notably, Comerica has a number of other aspects that make it an attractive investment option.
Why is Comerica an Attractive Pick
Revenue Strength: Comerica continues to make steady progress toward improving its top line. Sales witnessed a 4.3% compounded annual growth rate (CAGR) over the last four years (2013-2016). Also, the company’s projected sales growth (F1/F0) of 10.8% (as against the industry average of about 5.99%) indicates constant upward momentum in revenues.
Earnings Growth: Comerica has witnessed earnings growth of 5.1% in the last three-five years. In addition, the company’s long-term (three-five years) estimated EPS growth rate of 9% promises rewards for investors over the long run. Also, it recorded an average positive earnings surprise of 10.1% over the trailing four quarters.
Prudent Expense Management: Comerica remains on track to achieve its $125-million cost-savings target for 2017 through the GEAR Up initiative. Expenses decreased in the first nine months of 2017. Moreover, the company’s focus on driving long-term efficiency through the GEAR Up initiative keeps us optimistic. Such initiatives are anticipated to deliver annual pre-tax income of about $270 million by the year-end 2018, and additional benefits in pre-tax income of $35 million in 2019 and beyond.
Strong Leverage: Comerica’s debt/equity ratio is valued at 0.58 compared to the industry average of 0.88, indicating relatively lower debt burden. It also highlights the financial stability of the company despite an unstable economic environment.
Superior Return on Equity (ROE): Comerica’s ROE of 10.35% compared with the industry average of 10.29% highlights the company’s commendable position over its peers.
Stocks to Consider
Federated Investors, Inc. has been witnessing upward estimate revisions for the past 30 days. In six months’ time, the company’s share price has been up more than 26%. It carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Enterprise Financial Services Corporation (EFSC - Free Report) has been witnessing upward estimate revisions for the last two months. Additionally, the stock moved up more than 3% over the past six months. It currently carries a Zacks Rank of 2.
Artisan Partners Asset Management Inc. (APAM - Free Report) has been witnessing upward estimate revisions for the past month. Also, the company’s shares have risen nearly 33.8% in six months’ time. It also holds a Zacks Rank of 2, at present.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>