We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Park National (PRK) Should be Added to Your Portfolio
Read MoreHide Full Article
Amid the coronavirus pandemic, it seems to be a wise idea to add Park National Corporation (PRK - Free Report) stock to your portfolio now, given its underlying strength and solid growth prospects. The company has been undertaking several efforts to improve efficiency and optimize its operations.
Further, the Zacks Consensus Estimate for the current-year and next-year earnings moved upward over the past 30 days, respectively, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently holds a Zacks Rank #2 (Buy).
Shares of Park National have lost 23.1% in the past six months compared with the industry’s fall of 19.6%.
Why is Park National a Must Buy?
Revenue Strength: The company has witnessed a rise in net revenues over the last three years. Total revenues are projected to grow at a rate of 2.8% in 2020 (compared with the nil industry average). This upward trend is anticipated to be supported by a decent lending scenario and Park National’s efforts to boost its fee income.
Earnings per Share Growth: The company has witnessed a rise in earnings over the last three years. This earnings momentum is likely to continue in the near term, as reflected by the Park National’s decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters for as many misses.
Steady Capital-Deployment Activities: The company remains committed to enhancing its shareholders’ value. In 2019, the board authorized the repurchase of up to additional 500,000 shares of its common stock over the 500,000 authorized in 2017. Further, the bank has been actively paying common stock dividends for years, with the latest hike in January 2020.
Strong leverage: Park National’s debt/equity ratio is 0.18, compared with the industry average of 0.37, displaying a lower debt burden relative to the industry. It highlights the company’s financial stability even in an unstable economic environment.
Superior Return on Equity (ROE): Park National’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with the peers. The company has an ROE of 10.88%, higher than the industry average of 10.14%.
Stock seems undervalued: The stock has a Value Score of B. The Value Style 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 the combination of a Style Score of A or B, and carrying a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Tradeweb Markets Inc (TW - Free Report) has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, this Zacks #1 Ranked stock has gained 37.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings, Inc.’s current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have surged 47.8% over the past six months. At present, it holds a Zacks Rank of 2.
Mackinac Financial Corporation has witnessed upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #2 Ranked stock has depreciated 32.1% over the past six months.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
Why Park National (PRK) Should be Added to Your Portfolio
Amid the coronavirus pandemic, it seems to be a wise idea to add Park National Corporation (PRK - Free Report) stock to your portfolio now, given its underlying strength and solid growth prospects. The company has been undertaking several efforts to improve efficiency and optimize its operations.
Further, the Zacks Consensus Estimate for the current-year and next-year earnings moved upward over the past 30 days, respectively, reflecting analysts’ optimism regarding its earnings growth potential. Thus, the stock currently holds a Zacks Rank #2 (Buy).
Shares of Park National have lost 23.1% in the past six months compared with the industry’s fall of 19.6%.
Why is Park National a Must Buy?
Revenue Strength: The company has witnessed a rise in net revenues over the last three years. Total revenues are projected to grow at a rate of 2.8% in 2020 (compared with the nil industry average). This upward trend is anticipated to be supported by a decent lending scenario and Park National’s efforts to boost its fee income.
Earnings per Share Growth: The company has witnessed a rise in earnings over the last three years. This earnings momentum is likely to continue in the near term, as reflected by the Park National’s decent earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters for as many misses.
Steady Capital-Deployment Activities: The company remains committed to enhancing its shareholders’ value. In 2019, the board authorized the repurchase of up to additional 500,000 shares of its common stock over the 500,000 authorized in 2017. Further, the bank has been actively paying common stock dividends for years, with the latest hike in January 2020.
Strong leverage: Park National’s debt/equity ratio is 0.18, compared with the industry average of 0.37, displaying a lower debt burden relative to the industry. It highlights the company’s financial stability even in an unstable economic environment.
Superior Return on Equity (ROE): Park National’s trailing 12-month ROE reflects its superiority in terms of utilizing shareholder funds compared with the peers. The company has an ROE of 10.88%, higher than the industry average of 10.14%.
Stock seems undervalued: The stock has a Value Score of B. The Value Style 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 the combination of a Style Score of A or B, and carrying a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Stocks to Consider
Tradeweb Markets Inc (TW - Free Report) has witnessed upward earnings estimate revisions for 2020 over the past 60 days. Moreover, this Zacks #1 Ranked stock has gained 37.2% over the past six months. You can see the complete list of today’s Zacks #1 Rank stocks here.
GAIN Capital Holdings, Inc.’s current-year earnings estimate moved north in 60 days’ time. Further, the company’s shares have surged 47.8% over the past six months. At present, it holds a Zacks Rank of 2.
Mackinac Financial Corporation has witnessed upward earnings estimate revision for the ongoing year in the past 60 days. This Zacks #2 Ranked stock has depreciated 32.1% over the past six months.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>