Southern State Company The SSB now appears to be a solid bet, driven by solid fundamentals and promising prospects. In addition, the company’s strong balance sheet position keeps it well positioned for growth.
Additionally, analysts appear to be bullish on the company as the stock is seeing upward revisions to estimates. Zacks’ consensus estimate for earnings has risen 3.4% and 1% over the past 30 days, for 2021 and 2022, respectively. The company currently carries a Zacks Rank # 2 (Buy).
The stock has risen 19.4% in the past six months compared to the industrygrowth of 39.9%.
Image source: Zacks Investment Research
What makes South State Stock a solid choice
Strength of gains: South State has recorded a profit growth rate of 3.5% over the past three to five years. This earnings momentum is expected to continue in the near term, as indicated by the company’s projected EPS growth rate of 30.5% for 2021.
Increased income: The company continues to make steady progress towards improving its turnover. Its revenues registered a five-year CAGR (end of 2020) of 28.1%. In addition, its loan and deposit balance remains strong. This, combined with an improved operating environment, will continue to support its finances.
The company’s expected sales growth rate of 26.2% for 2021 indicates continued revenue growth.
Solid balance sheet: As of March 31, 2021, the company had a debt level of $ 878.6 billion and a debt-to-capital ratio of 0.9, which has declined in recent quarters. Company cash and cash equivalents and bank contributions amounted to $ 392.6 billion as of the same date. Additionally, with an improving earned interest ratio of 10.4 and strong earnings, the southern state has low credit risk and a lower likelihood of interest default and debt repayment. if the economic situation worsens.
Strong leverage: The company’s debt-to-equity ratio is estimated at 0.1 compared to the industry average of 0.16, indicating a relatively lower debt burden. It highlights the financial stability of the company even under adverse economic conditions.
Favorable VGM score: The company has a VGM score of B. VGM scorehelps identify stocks with the most attractive value, the best growth and the most promising momentum. The back-tested results show that stocks with a style score of A or B, when combined with a Zacks Rank # 1 (Strong Buy) or 2 offer the best investment opportunities.
Other actions to consider
Hilltop Holdings Inc. HTH has seen a 25.1% upward revision in estimates in the past 60 days. The company’s shares have risen 40% so far this year. He currently has a Zacks rank of 2. You can see The full list of today’s Zacks # 1 Rank stocks here.
Hancock Whitney CorporationHWC shares have gained 44.8% so far this year. In addition, the company’s earnings estimates for the current year have moved 23.5% north over the past 60 days. He currently has a Zacks rank of 2.
UMB Financial Company The UMBF has seen a 26.2% upward revision of the current year estimates in the last 60 days. Shares of this No.2 ranked Zacks stock have gained 39.7% so far this year.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.