The Dow Jones Industrial Index hit new lows for the year on Friday, following the release of a disappointing jobs report. The S&P 500 and Nasdaq are still in positive territory for the year, but Friday’s drop is weighing heavily on investor sentiment. Further downside would surprise no one.
But if you have cash burning a hole in your portfolio and the stomach for some volatility, today’s Daily Alert features a very resilient pick from the regional banking sector, from Upside.
“Heartland Financial USA, Inc.'s (HTLF) Overall score of 98 reflects ranks of 60 or higher for all six Quadrix category scores. For comparison, the average regional bank in our research universe earns an Overall score of 62. Heartland provides banking, mortgage and investment services at more than 60 locations in 13 states. On March 31, total assets reached $4.31 billion, up 8% from a year earlier, reflecting strong loan growth. The bank, which targets small businesses, has expanded its capabilities in residential mortgage production.
“For 2012, the consensus per-share profit estimate is $2.02, up from the $1.43 expected two months ago and the $1.23 reported for 2011. Based on strong March-quarter results, profits estimates seem achievable. Per-share earnings were $0.71, up from $0.18 and above the consensus of $0.31. Results benefited from a sharp decline in provisions for loan losses and gains on the sale of loans. Heartland Financial is being initiated as a Buy.”
- Richard J. Moroney, CFA, Upside, June 4, 2012