Latest news with #FFBC
Yahoo
4 days ago
- Business
- Yahoo
3 Bank Stocks with Open Questions
Banks use their capital and expertise to help businesses grow while offering consumers essential financial products like mortgages and credit cards. Still, investors are uneasy as banks face challenges from credit quality concerns and potential regulatory changes. These doubts have caused the industry to lag recently as banking stocks have collectively shed 6.9% over the past six months. This drawdown was disheartening since the S&P 500 held steady. A cautious approach is imperative when dabbling in banks as many are sensitive to interest rate changes and economic cycles. With that said, here are three bank stocks we're passing on. Market Cap: $17.71 billion Tracing its roots back to 1849 during the California Gold Rush era, KeyCorp (NYSE:KEY) operates KeyBank, a full-service regional bank providing retail and commercial banking, wealth management, and investment services across 15 states. Why Are We Wary of KEY? Net interest income stagnated over the last four years and signal the need for new growth strategies Overall productivity fell over the last four years as its plummeting sales were accompanied by a degrading efficiency ratio Earnings per share decreased by more than its revenue over the last five years, showing each sale was less profitable KeyCorp is trading at $16.15 per share, or 1.1x forward P/B. If you're considering KEY for your portfolio, see our FREE research report to learn more. Market Cap: $2.22 billion Tracing its roots back to 1863 during the Civil War era, First Financial Bancorp (NASDAQ:FFBC) is a bank holding company that provides commercial banking, lending, deposit services, and wealth management to individuals and businesses. Why Are We Cautious About FFBC? Muted 4% annual revenue growth over the last two years shows its demand lagged behind its bank peers Estimated net interest income growth of 1.2% for the next 12 months implies demand will slow from its four-year trend Annual tangible book value per share growth of 4.7% over the last five years was below our standards for the bank sector At $23.15 per share, First Financial Bancorp trades at 0.8x forward P/B. Dive into our free research report to see why there are better opportunities than FFBC. Market Cap: $1.46 billion Founded during the Roaring Twenties in 1926 and headquartered in Fair Lawn, New Jersey, Columbia Financial (NASDAQ:CLBK) operates federally chartered savings banks in New Jersey that offer traditional banking services including loans, deposits, and insurance products. Why Do We Avoid CLBK? Net interest income tumbled by 4.9% annually over the last four years, showing market trends are working against its favor during this cycle Concessions to defend its market share have ramped up over the last two years as its net interest margin decreased by 94.7 basis points (100 basis points = 1 percentage point) Falling earnings per share over the last five years has some investors worried as stock prices ultimately follow EPS over the long term Columbia Financial's stock price of $13.90 implies a valuation ratio of 1.3x forward P/B. Check out our free in-depth research report to learn more about why CLBK doesn't pass our bar. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Find your next big winner with StockStory today. Find your next big winner with StockStory today
Yahoo
14-05-2025
- Business
- Yahoo
First Financial Bancorp (FFBC) Could Be a Great Choice
All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments. Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases. Based in Cincinnati, First Financial Bancorp (FFBC) is in the Finance sector, and so far this year, shares have seen a price change of -6.29%. Currently paying a dividend of $0.24 per share, the company has a dividend yield of 3.81%. In comparison, the Banks - Midwest industry's yield is 3.14%, while the S&P 500's yield is 1.54%. Taking a look at the company's dividend growth, its current annualized dividend of $0.96 is up 2.1% from last year. First Financial Bancorp has increased its dividend 1 times on a year-over-year basis over the last 5 years for an average annual increase of 0.65%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Right now, First Financial's payout ratio is 36%, which means it paid out 36% of its trailing 12-month EPS as dividend. FFBC is expecting earnings to expand this fiscal year as well. The Zacks Consensus Estimate for 2025 is $2.63 per share, representing a year-over-year earnings growth rate of 0.38%. Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout. Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, FFBC is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of 3 (Hold). 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 First Financial Bancorp. (FFBC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
