This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

10 Bank Stocks Trading Below Book With Up To 85% Upside (Update 2)

4. Oriental Financial Group

Shares of Oriental Financial Group (OFG) of San Juan, Puerto Rico, closed at $11.54 Wednesday, down 5% year-to-date, following a 1% decline last year.

The shares trade for 0.8 times their Dec. 30 tangible book value of $15.12.

Oriental had $6.7 billion in total assets as of Dec. 30, and saw a major expansion with its purchase of the failed Eurobank of San Juan from the Federal Deposit Insurance Corp. in April 2010.

The company reported a fourth-quarter net loss to common shareholders of $13.1 million, or 31 cents a share, compared to earnings of $3.9 million, or eight cents a share, in the fourth quarter of 2010. The fourth-quarter loss mainly resulted from a $15 million impairment charge on securities.

The company repurchased 2.8 million common shares during the fourth quarter, and is authorized under its current buyback plan to repurchase another $40 million worth of shares.

The shares trade for 10 times the 2012 consensus EPS estimate of $1.21. The 2013 EPS estimate is $1.66.

KBW analyst Derek Hewett rates Oriental Financial Group "Outperform," with a $15 price target, saying on Feb. 1 that the company's "credit still looks relatively good given the difficult operating environment in Puerto Rico," and that its disappointing fourth quarter reflected a 27 basis point decline in the net interest margin to a low 1.74%, "as increased prepayment speeds resulted in higher premium amortization."

Oriental Financial Group projects a 2.50% net interest margin for 2012.

Hewett estimates that Oriental will earn $1.25 a share in 2012, followed by EPS of $1.65 in 2013.

Interested in more on Oriental Financial Group? See TheStreet Ratings' report card for this stock.

8 of 11

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
BPOP $33.43 -2.40%
BAC $15.56 -0.51%
C $52.81 -0.17%
JPM $62.36 -0.38%
WFC $54.95 0.46%

Markets

DOW 18,037.97 -42.17 -0.23%
S&P 500 2,108.92 -8.77 -0.41%
NASDAQ 5,060.2460 -31.8390 -0.63%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs