On May 16, 2014, Zacks Investment Research upgraded Great Southern Bancorp Inc. GSBC to a Zacks Rank #1 (Strong Buy).
Why the Upgrade?
Great Southern Bancorp has been witnessing rising earnings estimates on the back of strong first-quarter 2014 results. The stock has a long-term expected earnings growth rate of 9.0%. Further, Great Southern Bancorp has delivered positive earnings surprises in the last 4 quarters with an average beat of 27.1%.
Great Southern Bancorp reported first-quarter results on Apr 21 with earnings per share of 63 cents, beating the Zacks Consensus Estimate by 23.5%. Moreover, this was also up 5.0% from the year-ago earnings of 60 cents.
Results benefited mainly from 79.4% year over year decrease in provision for loan losses and almost in line non-interest expenses. Further, improved asset quality and strong capital ratios were other tailwinds.
Non-performing assets to period-end assets was 1.48%, down 33 basis points (bps). Also, allowance for loan losses was 1.76% to period-end loans, declining 39 bps. Further, Great Southern Bancorp recorded improvement in profitability ratios as well.
On the flip side, lower net interest income and a drastic decline in non-interest income dragged the results down.
During the last 30 days, the Zacks Consensus Estimate for 2014 increased 9.9% to $2.23 per share. For 2015, the Zacks Consensus Estimate remained stable at $2.12 per share over the same time period.
Other Stocks to Consider
Some other banking stocks worth considering include Anchor Bancorp ANCB, Capital City Bank Group Inc. CCBG and Farmers Capital Bank Corporation FFKT. All these banks sport a Zacks Rank #1.
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