Yahoo Finance Earnings Estimates Moving Higher for Bank of NT Butterfield & Son (NTB): Time to Buy?
Investors might want to bet on Bank of NT Butterfield & Son (NTB), as earnings estimates for this company have been showing solid improvement lately. The stock has already gained solid short-term price momentum, and this trend might continue with its still improving earnings outlook.
Analysts' growing optimism on the earnings prospects of this community bank is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. This insight is at the core of our stock rating tool -- the Zacks Rank.
The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008.
For Bank of NT Butterfield & Son, strong agreement among the covering analysts in revising earnings estimates upward has resulted in meaningful improvement in consensus estimates for the next quarter and full year.
Current-Quarter Estimate Revisions
For the current quarter, the company is expected to earn $1.03 per share, which is a change of -9.65% from the year-ago reported number.
The Zacks Consensus Estimate for Bank of NT Butterfield & Son has increased 5.64% over the last 30 days, as two estimates have gone higher compared to no negative revisions.
Current-Year Estimate Revisions
The company is expected to earn $4.40 per share for the full year, which represents a change of -6.38% from the prior-year number.
There has been an encouraging trend in estimate revisions for the current year as well. Over the past month, two estimates have moved up for Bank of NT Butterfield & Son versus no negative revisions. This has pushed the consensus estimate 6.93% higher.
Favorable Zacks Rank
The promising estimate revisions have helped Bank of NT Butterfield & Son earn a Zacks Rank #1 (Strong Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Bottom Line
While strong estimate revisions for Bank of NT Butterfield & Son have attracted decent investments and pushed the stock 6.5% higher over the past four weeks, further upside may still be left in the stock. So, you may consider adding it to your portfolio right away.
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Bank of N.T. Butterfield & Son Limited (The) (NTB) : Free Stock Analysis Report
