4. Trustmark Corp.
Shares of Trustmark Corp. (TRMK) of Jacks, Miss., closed at $24.40 Thursday, returning 1% year-to-date, following a 2% return during 2011. The company's return on average assets for 2011 was 1.11%.
Based on a quarterly payout of 23 cents, the shares have a dividend yield 3.77%.The shares trade for 1.8 times tangible book value, according to HighlineFI, and for 15 times the consensus 2013 EPS estimate of $1.66. The consensus 2012 EPS estimate is $1.60. The company had $9.7 billion in total assets as of Dec. 30. Trustmark on March 16 completed its acquisition of Bay Bank & Trust of Panama City, Fla., for roughly $22 million in cash and stock, brining on seven branches, with $117 million in loans and $207 million in deposits. Trustmark is scheduled to report its first-quarter results on April 24, with a consensus analyst estimate of 39 cents, increasing from 38 cents in the fourth quarter, and 37 cents during the first quarter of 2011. Our of nine analysts covering Trustmark, even have neutral rating, while two rate the shares "Underperform," or sell. Considering that most analysts have 12-month outlooks for their recommendations and price targets, it's not surprising that a quality name like Trustmark, trading at rather high multiples, would have some analysts recommending that investors steer clear. JPMorgan analyst Steven Alexopoulos last Wednesday reiterated his "Underweight" rating on Trustmark, with a $12 price target, saying the company "ended the final quarter of 2011 on a mixed note, with a mixture of both positive and negative indicators pointing in no clear direction for 2012," and that "although progress was made on the credit front," there was "still ample wood to chop, including [a nonperforming assets] ratio that ended 2011 at 3.8%." Alexopoulos said that "while downside risk may be abating, given a growth picture that is likely to trail peers and profitability level that is unlikely to exceed the bank's cost of capital for several years, we see fair valuation of BXS shares near tangible book value," implying significant downside for the shares. Interested in more on Trustmark? See TheStreet Ratings' report card for this stock.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV