StockStory Flags Three Bank Stocks to Avoid

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Summary · why it matters

StockStory identifies WSFS Financial, Simmons First National, and Preferred Bank as three bank stocks it is steering clear of, citing lagging growth and profitability metrics. WSFS Financial posted 9.7% annual net interest income growth over five years, slower than peers, with estimated growth of just 3.3% for the next twelve months. Simmons First National recorded muted 4% annual net interest income growth and its efficiency ratio is expected to worsen by 17.8 percentage points over the next year. Preferred Bank saw its net interest margin shrink by 61.7 basis points over two years and earnings per share grow only 1.3% annually, trailing peers.

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