All posts from Zacks
Zacks in Our Research. Your Success.,

The Zacks Analyst Blog Highlights: SPDR S&P Regional Banking, Farmers & Merchants Bancorp, Park Sterling and Two River Bancorp

For Immediate Release

Chicago, IL – April 05, 2017 – announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include SPDR S&P Regional Banking (NYSEARCA: KRE Free Report ), Farmers & Merchants Bancorp, Inc. (OTCMKTS: FMAO Free Report ), Park Sterling Corporation (NASDAQ: PSTB Free Report ) and Two River Bancorp (NASDAQ: TRCB Free Report ).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free .

Here are highlights from Tuesday’s Analyst Blog:

3 Banking Stocks with Further Upside Potential

The first quarter of 2017 ended on a positive note for the overall market. The banking stocks in particular, were investor favorites during this period. We are now eagerly waiting to see the financial performance of the banking stocks subsequent to the two rate hikes in three months and a gradually improving operating environment.

These along with positive developments on domestic and global fronts helped the overall market rally. The Dow Jones Industrial Average, NASDAQ Composite index and S&P 500 rose 3.9%, 8.9% and 4.7%, respectively, in the first quarter.

Before we check out how the earnings are expected to be for the banking stocks, let’s first dig into the factors that influenced the banks.

Factors at Play

Unlike the past couple of years, 2017 began on a positive note for the banks, as the Federal Reserve announced rate hike in mid-Dec 2016. Apart from this, an improving economy and the Fed’s projections of three rate hikes kept the optimism alive.

Additionally, President Trump’s promises of easing regulatory restrictions and lower tax rates supported the bank rally. Also, mortgage rates continued to move higher as money was pulled out of the bond market and yields on 10-year Treasuries climbed.

Moreover, the Fed’s announcement of a rate hike in March further reinforced the banking stocks’ financial performance in the quarters ahead. But speculations of delayed implementation of Trump’s financial policies as well as rise in bond prices led to a sell-off in the banking stocks in the latter half of the month.

This marginally dampened the overall performance of the stocks in the quarter. S&P Regional Banks Select Industry Index and SPDR S&P Regional Banking ETF (NYSEARCA: KRE Free Report ) ended the quarter in red, with both recording a fall of over 1.7%.

Earnings Projections for Q1

Nonetheless, one should not worry too much about this dismal price performance. Improved earnings results along with favorable operating backdrop will continue to support banks’ financials.

Per our latest Earnings Outlook report, earnings growth for Banks & Thrifts is expected to be 14.9% in first-quarter 2017. Earnings growth is expected to be 5.6% for the overall Finance sector.

Therefore, to cash-in the earnings performance this is the right time to add a few stocks that have been part of the banking stock rally and have further upside potential.

Choosing the Winning Stocks

We have taken the help of the Zacks Stock Screener to select the favorable stocks. To shortlist the stocks from the vast universe of banking, we have picked stocks that carry a Zacks Rank #1 (Strong Buy) or #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here .

To further filter the list, we selected stocks that gained 15% or more over the last 12 weeks. Also, these stocks are expected to witness 10% or more earnings growth in the first quarter.

Here are the three stocks that fulfilled all these criteria:

Farmers & Merchants Bancorp, Inc. (OTCMKTS:FMAO Free Report ), providing commercial banking, retail banking and other financial services to individuals and small businesses, sports a Zacks Rank #1. Shares of the company jumped 20.2% in the first three months of 2017. Further, the company is anticipated to witness earnings growth of 18.5% in the first quarter.

Park Sterling Corporation (NASDAQ:PSTB Free Report ), providing various banking products and services, carries a Zacks Rank #2. In the first three months of 2017, the company recorded 16.4% rise in its share price. Also in the first quarter, the company is expected to record 12.5% earnings growth.

Two River Bancorp (NASDAQ:TRCB Free Report ), offering banking services to small and medium-sized businesses, professionals and individual consumers, sports a Zacks Rank #1. The company shares jumped 29.2% in the first three months of 2017. Moreover, the company is projected to report 15% earnings growth in the first quarter.

Now See Our Private Investment Ideas

While the above ideas are being shared with the public, other trades are hidden from everyone but selected members. Would you like to peek behind the curtain and view them? Starting today, for the next month, you can follow all Zacks' private buys and sells in real time from value to momentum . . . from stocks under $10 to ETF and option moves . . . from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors. Click here for Zacks' secret trades >>

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1 Stock of the Day pick for free .

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Strong Stocks that Should Be in the News

Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.

Get the full Report on KRE - FREE

Get the full Report on FMAO - FREE

Get the full Report on PSTB - FREE

Get the full Report on TRCB - FREE

Follow us on Twitter:

Join us on Facebook:

Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.

Media Contact

Zacks Investment Research

800-767-3771 ext. 9339

Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit for information about the performance numbers displayed in this press release.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
SPDR-KBW REG BK (KRE): ETF Research Reports
Farmers & Merchants Bancorp Inc. (FMAO): Free Stock Analysis Report
Park Sterling Corporation (PSTB): Free Stock Analysis Report
Two River Bancorp (TRCB): Free Stock Analysis Report
To read this article on click here.