Yahoo Finance The Zacks Analyst Blog Highlights CF Bankshares, Northeast Community Bancorp, Old Second Bancorp, BCB Bancorp NJ and S&T Bancorp
For Immediate Release
Chicago, IL – December 27, 2022 – Zacks.com 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: CF Bankshares CFBK, Northeast Community Bancorp NECB, Old Second Bancorp OSBC, BCB Bancorp NJ BCBP and S&T Bancorp STBA.
Here are highlights from Friday’s Analyst Blog:
As Rate Hike Fears Deepen, Here Are 5 Bank Stocks to Buy for 2023
A couple of fresh economic reports raised worries about the Federal Reserve's continued monetary tightening measures. Despite rampant inflation, the U.S. economy expanded at an annualized rate of 3.2% in the third quarter, more than an earlier estimate of 2.9%.
The growth in the economy's output in goods and services from July through September period has actually followed two successive declines in the January-March and April-June periods.
Additionally, Americans filing for unemployment benefits increased to 216,000 last week, per the Labor Department. But it was much lower than economists' expectations of 222,000, indicating strength in the labor market.
However, if the economy exhibits strength, the Fed may be compelled to raise interest rates more than what was expected in 2023 and beyond. After all, a stronger economy usually leads to an increase in consumer outlays, thereby increasing the prices of essential goods and services.
The Fed, by the way, has remained hawkish all through this year in order to tame inflation that had reached heights not witnessed since the early 1980s. Lest we forget, even though inflation has slowed down a bit in November, it's still way higher than the Fed's target range. The central bank, in reality, increased interest rates by 0.50 percentage points this month after four consecutive three-quarter point rate hikes this year in an attempt to curb inflation.
Besides, the Fed has given signs that it is only keen to alter its policy-tightening stance if inflation recedes in a sustainable fashion. However, with the economy showing signs of strength and eventually leading to an increase in consumer spending over the course of time, any change in Fed's hawkish tone seems like a distant dream at the moment.
From an investment perspective, a hawkish Fed is a boon for banks. The profit margin of banks improves with interest rate hikes since the spread between what banks earn by funding long-term assets, with short-term liabilities increases. Banks are, anyhow, poised to do well heading into the new year, banking on solid consumer loan growth and an increase in high net-worth individuals' wealth.
Banking on such positives, we have highlighted five bank stocks, namely, CF Bankshares, Northeast Community Bancorp, Old Second Bancorp, BCB Bancorp NJ and S&T Bancorp, whose shares have gained considerably this year, and are poised to gain further traction in the near term. These stocks boast a solid Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see the complete list of today's Zacks Rank #1 stocks here.
CF Bankshares operates as the bank holding company for CFBank, National Association, which provides banking products and services principally in the United States. CF Bankshares, currently, has a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has moved up 1% over the past 60 days. CFBK's expected earnings growth rate for the current year is 6.1%. It's projected earnings growth rate for next year is 6.8%.
Northeast Community Bancorp is a federally chartered stock holding company established to be the holding company for Northeast Community Bank. Northeast Community Bancorp, currently, has a Zacks Rank #1.
The Zacks Consensus Estimate for its current-year earnings has moved up 22.6% over the past 60 days. NECB's expected earnings growth rate for the current year is 117.3%. It's projected earnings growth rate for next year is 9.8%.
Old Second Bancorp's full-service banking businesses include the customary consumer and commercial products and services that banks provide. Old Second Bancorp, currently, has a Zacks Rank #2.
The Zacks Consensus Estimate for its current-year earnings has moved up almost 2% over the past 60 days. OSBC's expected earnings growth rate for the current year is nearly 14%. It's projected earnings growth rate for next year is 25.8%.
BCB Bancorp operates as the holding company for BCB Community Bank, a state-chartered commercial bank that provides banking products and services to businesses and individuals in the United States. BCB Bancorp, currently, has a Zacks Rank #2.
The Zacks Consensus Estimate for its current-year earnings has moved up 2.1% over the past 60 days. BCBP's expected earnings growth rate for the current year is 49.5%. It's projected earnings growth rate for the next quarter is 30.4%.
S&T Bancorp is a bank holding company engaged in the general banking business. S&T Bancorp, currently, has a Zacks Rank #2.
The Zacks Consensus Estimate for its current-year earnings has moved up 5.7% over the past 60 days. STBA's expected earnings growth rate for the current year is 19.6%. It's projected earnings growth rate for the next quarter is 14.7%.
Why Haven't You Looked at Zacks' Top Stocks?
Our 5 best-performing strategies have blown away the S&P's impressive +28.8% gain in 2021. Amazingly, they soared +40.3%, +48.2%, +67.6%, +94.4%, and +95.3%. Today you can access their live picks without cost or obligation.
See Stocks Free >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
support@zacks.com
https://www.zacks.com
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 https://www.zacks.com/performance 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
Old Second Bancorp, Inc. (OSBC) : Free Stock Analysis Report
S&T Bancorp, Inc. (STBA) : Free Stock Analysis Report
BCB Bancorp, Inc. NJ (BCBP) : Free Stock Analysis Report
CF Bankshares Inc. (CFBK) : Free Stock Analysis Report
Northeast Community Bancorp Inc. (NECB) : Free Stock Analysis Report
