StockStory Backs Popular, East West Bank and Flags $3.67 Billion First Interstate for Sale
Updated
Updated · Yahoo Finance · Aug 16
StockStory Backs Popular, East West Bank and Flags $3.67 Billion First Interstate for Sale
3 articles · Updated · Yahoo Finance · Aug 16
Summary
StockStory named Popular and East West Bank as bank stocks to watch while urging investors to sell First Interstate BancSystem, arguing a weak sector still contains a few durable growers.
An 8% six-month return for banking stocks has lagged the S&P 500 by 5 percentage points as slowdown and credit-quality worries have weighed on sentiment.
First Interstate, valued at $3.67 billion, was singled out for stagnant sales, a projected 6.5-point rise in its efficiency ratio and just 1.3% annual EPS growth over five years.
Popular, by contrast, was highlighted for expected 16.7% net interest income growth, a 58.8-basis-point margin expansion over two years and buybacks that boosted EPS faster than revenue.
The call extends StockStory's broader run of stock screens, after it earlier warned investors to be cautious on Box, Monarch and Bank of America.