3 Factors That Make HopFed Bancorp (HFBC) A Solid Pick Now

Strong fundamentals and solid long-term growth potential make HopFed Bancorp, Inc. (NYSE:FBC) a solid pick right now. The company has been witnessing upward earnings estimate revisions lately. Over the past 30 days, the Zacks Consensus Estimate for 2017 and 2018 increased 16.7% and 19.4%, respectively.

There are a number of factors that might drive HopFed Bancorp stock higher in the coming months. Here are three key drivers:

Earnings per Share (EPS) Strength: HopFed Bancorp has witnessed 78.2% growth in earnings per share over the last three to five years compared with the industry’s growth of 9.4%. The trend is expected to continue in the near term, as the company’s projected EPS growth is 47.9% for 2017 (versus 8.4% for the industry).

Revenue Strength: Though the company’s revenues have been declining over the past few years, the top line is expected to grow 4.56% in 2017, much higher than the industry’s flat trend. Further, in 2018, it is expected to grow 2.56%.

Leverage: HopFed Bancorp’s debt/equity ratio of 0.62 compares favorably with the industry average of 0.88. This leverage status should help the company perform better than its peers in a dynamic business environment.

This Zacks Rank #2 (Buy) stock has gained around 22.9% in a year’s time, outperforming the 13.4% rally recorded by the industry it belongs to.



Other Stocks to Consider

Some other top-ranked stocks in the finance space are MutualFirst Financial, Inc. (NASDAQ:MFSF) , Flagstar Bancorp, Inc. (NYSE:FBC) and Provident Financial Services, Inc. (NYSE:PFS) .

MutualFirst Financial Corporation witnessed an upward earnings estimate revision of 9% for the current year, in the past 30 days. Its share price has increased 2.5% in the last three months. It sports a Zacks #1 Rank (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Flagstar Bancorp was revised 5.3% upward for the current year, in the past 30 days. The company’s share price has increased 7.2% in the last three months. It carries a Zacks Rank #2.

Provident Financial Services witnessed upward earnings estimate revision of 2.8% for the current year, in the last 30 days. Its share price has increased 2.7% in the last three months. It carries a Zacks Rank #2.

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Flagstar Bancorp, Inc. (FBC): Free Stock Analysis Report

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HopFed Bancorp, Inc. (HFBC): Free Stock Analysis Report

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