Bank OZK Should Reverse Some Recent Underperformance As Loan Growth Accelerates

Given the prospect for numerous rate hikes over the next two years, not to mention improving loan growth, the over growth prospects for banks are looking better than they have in some time. Keys for this next part of the cycle will be the ability to grow loans, manage costs, and keep deposit costs low, and I think Bank OZK (NASDAQ:OZK) is well-placed to achieve two of the three, making it an above-average prospect at this point.

When I last wrote about Bank OZK a year or so ago, I thought the bank’s near-term prospects were more modest than for other banks I preferred at the time, and the shares have modestly underperformed since then. At this phase of the cycle, though, I’m more bullish on Bank OZK, and I think this is a name worth considering again.

 

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Bank OZK Should Reverse Some Recent Underperformance As Loan Growth Accelerates