Investors constantly attempt to discover which industry or sector holds the most potential for capital gains. The banking industry is known its long-term stability, but not necessarily its growth prospects.
However, the Federal Reserve is expected to continue raising the benchmark interest rate into the future. Rising interest rates could possibly allow for banks to their boost earnings due to larger interest payments on their outstanding loans to businesses and individuals. This means that the banking industry is once again in the spotlight.
Fortunately, we can utilize the Zacks Stock Screener to search for bank stocks that possess a positive outlook in the ever-changing banking industry. As the Federal Reserve continues to shape the future economic landscape, interest rates are projected to continue increasing, which could positively affect shareholders of banking stocks.
Check out 4 banking stocks that are projected to surge now:
1. First Financial Corporation Indiana (THFF - Free Report)
First Financial Corporation is a regional multi-bank holding company including Terre Haute First National Bank, First State Bank, First National Bank of Marshall, First Crawford State Bank, and more. First Financial Corporation has surpassed our earnings projections in each of its past five operational quarters by an average of 8.37%. The company sports “B†grades for Value and Growth, which means that the company could be viewed as undervalued while exhibiting excellent growth opportunities. Also, the bank rewards its shareholders with a strong 2.09% dividend.
First Financial Corporation holds an EV/EBITDA of 7.72 and current cash flow growth of 21.87%, both of which compare favorably to their industry averages of 10.34 and 14.38%, respectively. Additionally, the bank possesses a net margin of 23.42%, which also beats the industry average. This means that First Financial Corporation is retaining a larger amount of profit than its competitors. Basically, this trait could be advantageous if interest rates continue to rise and the bank is subject to increased earnings. First Financial Corporation currently holds a Zacks Rank #2 (Buy).
