Long-term yields for U.S. Treasuries should indeed firm but be tempered by a slowing as this phase o...
Another Split Boosts Home BancShares
05/26/2016 9:00 am EST
We focus exclusively on stocks that have announced upcoming 2-for-1 splits; this month, we have a very strong candidate for inclusion in our model portfolio, asserts Neil Macneale, editor of 2-for-1 Stock Split Newsletter.
The top ranked stock for this month is one we previously held in our portfolio -- Home BancShares (HOMB).
Based in Conway Arkansas, HOMB was only recently sold from the 2 for 1 portfolio, after providing us with over a 27% annualized overall return.
I’m happy to report that, in spite of its super performance over the last several years, the numbers indicate this great small-cap bank is not even close to slowing down.
Valuation numbers are higher than average for its industry and sector. I can live with that because, for almost every other important metric, HOMB just crushes its peers.
Starting with the growth numbers, we see this small bank in the 96th percentile for earnings growth over the last five years. Returns, profit margins, and balance sheet numbers are all far better than average for its industry.
As the banking business gets more and more concentrated into a very few mega- banks, it’s very nice to see there’s still an opportunity to thrive as a much smaller local or regional institution.
Home BancShares is my new recommendation for May. Overall, I am very pleased to have HOMB return once again for our model portfolio.
By Neil Macneale, Editor of 2-for-1 Stock Split Newsletter
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Neil Macneale is the editor of 2-for-1 Stock Split Newsletter, a speciality advisory service in whic...