First Citizens BancShares is Thursday's IBD 50 Stocks To Watch pick as it remains in a buy zone. The parent of First Citizens Bank benefited from its acquisition of failed Silicon Valley Bank's assets almost one year ago.
First Citizens Bank serves commercial, small business, personal and wealth clients. The regional bank has over $200 billion in assets with bank branches in 23 states. It holds the No. 1 spot out of 73 stocks in the Southeast banks industry group, which ranks 96th out of 197 groups.
First Citizens Bank Remains In Buy Zone
The regional bank stock is in a 5% buy zone up to 1,604.53 from a flat base with a 1,528.12 buy point. The stock first hit the buy point as it jumped 5.5% on Jan. 26, following the bank's fourth-quarter earnings report. The company missed on earnings and sales estimates, but the stock rose anyway.
First Citizens Bank stock reclaimed its 50-day moving average on the move and held it with only one test since. The stock spent multiple days below the buy point but made its way back to the buy zone. Its relative strength line has flattened, reflecting the stock's rangebound action the past several months.
One More Quarter Of Triple-Digit Growth Expected
The regional bank has produced triple-digit earnings and sales growth for three straight quarters over the prior year, since adding Silicon Valley's assets on March 27, 2023. That helps explain one more quarter of expected triple-digit EPS and sales growth. The current quarter's profit is estimated to rise 121% on 95% sales growth, according FactSet projections on the MarketSurge weekly chart.
Earnings and sales are expected to decline in the following three quarters compared to the prior year's post-acquisition numbers.
"We now look forward to 2024, remaining focused on prudent risk management, growing our core lines of business, and maintaining solid capital and liquidity positions," said Frank B. Holding, Jr., chairman and CEO, in the earnings release.
"We continue to be well-positioned to deliver strong financial results and long-term tangible book value growth for our stockholders," Holding added.
Analysts expect 3% full-year 2024 earnings growth and 8% in 2025.
Mutual funds have added shares of the regional bank stock, with 1,248 funds owning it in December, up from 1,123 in September. The regional bank stock boasts a best-possible 99 IBD EPS Rating and a 95 Composite Rating.
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