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Why First Financial (FFIN) Should be Added to Your Portfolio


Banks constitute a major part in the broad Finance sector. Recent developments in the banking sector, including the recent Fed interest rate hike and the approval of Financial Choice Act, are driving factors for investors to add banking stocks to their portfolio. Therefore, based on strong fundamentals and solid long-term growth opportunities, First Financial Bankshares, Inc. FFIN is one such stock.

First Financial has been witnessing upward estimate revisions over the last 60 days, reflecting analysts’ optimism about its future prospects. The Zacks Consensus Estimate for 2017 inched up around 1.0%.

Further, shares of this Zacks Rank #2 (Buy) stock gained 29.5% over the last one year compared with 35.2% growth recorded by the Zacks categorized Southwest Banks industry.

Notably, First Financial has a number of other aspects that make it an attractive investment option.

3 Reasons Why First Financial is an Attractive Buy Now

Revenue Growth: First Financial continues to make steady progress toward improving its top line. Also, the company’s projected sales growth (F1/F0) of 13.38% (as against the nil industry average) indicates constant upward momentum in revenues.

Strong Leverage: First Financial’s debt/equity ratio is valued at 0.00, compared to the industry’s average of 0.74, displaying no debt burden relative to the industry. It highlights the financial stability of the company even in an unstable economic environment.

Superior Return on Equity (ROE): First Financial’s ROE of 12.32%, as compared with the industry average of 9.90%, underlines the company’s commendable position over its peers.

Stocks to Consider

BOK Financial Corporation BOKF has been witnessing upward estimate revisions for the last 60 days. Over the last one year, the company’s share price has been up more than 40%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Comerica Incorporated CMA has been witnessing upward estimate revisions for the last 60 days. Additionally, the stock moved up nearly 75.7% over the past one year. It currently has a Zacks Rank #2.

BancFirst Corporation BANF has been witnessing upward estimate revisions for the last 60 days. Also, the company’s shares have risen nearly 59.6% over the last one year. It holds a Zacks Rank #2, at present.

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