Shares of BofI rallied nearly 6% today, fueled partly on news that the stock will be added to the S&P SmallCap 600 Index. BofI has surged 141% so far in 2013, helping push the bank’s market capitalization up to $923 million. Robust earnings and asset growth and improved credit quality have boosted the stock’s appeal. In addition, BofI operates mostly over the Internet and does not incur the higher operating costs of many branch-based banks. At 91, the Quadrix Overall score is well above the industry average of 62. A top pick in the financial sector, BofI is rated Best Buy.
Richard J. Moroney, CFA, Upside, 800-233-5922, September 17, 2013