While Texas-based Prosperity Bancshares (PB)
has gone along with the year-to-date mid-cap bank stock rally, the
overall performance over the past year hasn't been all that special. A
lot of that has to do with the valuation; investors have generally been
happy to assign robust multiples to this bank due to its uncommon growth
and quality, but those same multiples seem to have left these shares a
relative also-ran in performance.
And so it is today - while
Prosperity is a very well-run bank and has substantial long-term growth
potential (not to mention ample dry powder on the balance sheet), the
valuation today is not what I'd call "can't miss." With mid-cap banks in
general looking a little pricey, Prosperity isn't a bad relative call
today, but more nimble investors may want to focus their time and
attention today on small-cap banks while waiting for a pullback in names
like Prosperity.
Please continue reading here:
High Quality And Ample Dry Powder Make Prosperity Bancshares One To Watch
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