We are in the middle of earnings season, and it has been very mixed so far. Investors are uncertain as to which sectors are primed to deliver this earnings season, and which will disappoint. However, there has been one bright spot-- at least when looking at performance-- the financial sector.
Since February, the iShares U.S. Financials ETF (NYSE:IYF) has picked up 6.03%. In that same time frame, the S&P 500 index has only gone up 2.64%. This may suggest that financials have been on a roll this quarter. Thus, you want to consider buying these financial stocks before they report earnings after trading this Monday.
First Defiance Financial Corp
First Defiance Financial Corp (NASDAQ:FDEF) is a holding company with traditional banking, mortgage banking, and insurance subsidiaries. The company has a Zacks Rank #1 (Strong Buy). It’s worth noting that the holding company has a Style Score of “B” for Value as well as Momentum.
The year-over-year growth estimate for earnings is 9.15% from this quarter. In each of the last four quarters, FDEF has beaten our consensus earnings estimate. It has beaten our estimate each quarter by an average of 13.79%. First Defiance reports its earnings after trading on Monday, 4/20/15.
Pinnacle Financial Partners, Inc
Pinnacle Financial Partners (NASDAQ:PNFP) owns all of the capital stock of Pinnacle National Bank, which operates in Nashville Tennessee. They provide financial services for businesses as well as individuals. Expect more volatility with this stock, as it has a beta of 1.82. It also holds a Zacks Rank #1 (Strong Buy).
The year-over year growth estimate for earnings is 19.5% from this quarter. The company has a trailing twelve month net profit margin of 27.23%. 90 days ago, our earnings consensus for this quarter expected to see earnings of $0.53 for this quarter. Since then, the estimate has been revised, now calling for earnings of $0.56. Pinnacle has beaten our earnings consensus in 3 of the last 4 quarters.
Bank of Hawaii Corporation
Bank of Hawaii (NYSE:BOH) is a financial services company. Its clients include businesses, consumers, and governments in Hawaii, the American Samoa, as well as the West Pacific. BOH is a Zacks Rank #2 (Buy). The company doles out a nice 2.9% dividend. It also scores a “B” in our Style Scores for Value.
BOH has a trailing twelve month net profit margin of 27.28%. There have been two analysts revising their estimates for this quarter in the last 60 days. Both of them were positive. Bank of Hawaii has beaten our earnings consensus estimate in each of the last 4 quarters, and by an average of 2.5%, to boot.