The Bancorp is just above a cup with handle with a buy point of 40.46. The handle shows a bullish three-weeks tight pattern, according to IBD MarketSmith chart tools. The Bancorp is today's selection for IBD 50 Stocks To Watch. Shares have risen as bank stocks showing signs of recovery.
Sales and earnings have held steady over the past seven quarters. Revenue growth has ranged between 3% and 51%. Earnings growth has ranged between 8% and 76%. During the third quarter, revenue grew 31% to $115.7 million while earnings per share of 92 cents were up 70%.
For the full year, Wall Street estimates earnings of $3.64 per share, or a 60% increase.
Shares have gained 43% so far this year, nearly double the S&P 500's gain of 23.5%.
TBBK has an ideal Composite Rating and EPS Rating of 99. The Relative Strength Rating is 87. It ranks third in the Northeast banks industry group. The group has moved up from 43rd place among 197 industry groups six weeks ago, to 28th place three weeks back, to 14th place this week.
Bank Stocks Recover
Regional banks had a rough start early in 2023 as the Fed went on one of its fastest tightening cycles in history. These banks were among the worst affect during the bank run that started in March, when Silicon Valley Bank collapsed. However, as the Fed looks poised to bringing down interest rates in 2024, regional banks may be setting up for a recovery.
The Bancorp was founded in 2000 and went public on the Nasdaq in December 2004. The company provides payments services and specialized lending. The Bancorp also specializes in private label banking services to nonbank companies.
In addition, the company provides prepaid debit and credit card services. The company also has an institutional banking segment. Its commercial lending program targets small businesses and vehicle fleet operators. It also provides bridge loans for real estate purchases, home improvement and other leasing costs.
Mutual funds own 66% of the bank stock. More funds have been net buyers over the past three quarters. Exchange traded funds hold shares of TBBK too. State Street's SPDR S&P Regional Bank ETF and the iShares S&P Small Cap 600 Growth ETF hold shares of TBBK.
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