This Day On The Street
Continue to site right-arrow
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

6 Best-Rated Bank Stocks From TheStreet Ratings


Investors Bancorp

Shares of Investors Bancorp (ISBC) Short Hills, N.J., closed at $18.04 Friday, returning 34% year-to-date, following a 3% return during 2011.

The shares trade for 2.1 times tangible book value, according to Thomson Reuters Bank insight, and for 18 times the consensus 2013 earnings estimate of 99 cents a share, among analysts polled by Thomson Reuters. The consensus 2012 EPS estimate is 87 cents.

For the 12-month period ended June 30, the company's operating return on average assets (ROA) was 0.75%, while its return on average equity (ROE) was 8.42%, according to Thomson Reuters Bank insight.

Sterne Agee analyst Matthew Kelley rates Investors Bancorp a "Buy," and on Thursday raised his price target for the shares by a dollar to $19, saying that "after recently meeting with management, we are incrementally more positive on the fundamental outlook for the company," and "now expect a second step conversion will be announced in Q1 of 2013."

Investors Bancorp is part of a mutual holding company structure, with Investors Bancorp MHC holding 58.4% of outstanding common shares as of Aug. 1.

During the second quarter, Investors Bancorp repurchased 2,000 shares, and as of June 30 was authorized by its board of directors to buy back 2,194,239 additional shares.

Kelley said that "the company is expected to continue to report high-single digit loan growth, strong mortgage banking gains and steadily improving credit trends in Q3 and Q4 of 2012," which the analyst expects "to be partially offset by ongoing pressure on the net interest margin (NIM)." He said that his firm is "looking for 9% and 7% loan growth in 2013 and 2014," and that "the NIM is expected to contract by 13 and 7 bp in 2013 and 2014."

Investors Bancorp's second-quarter net interest margin -- the difference between the average yield on loans and investments and the average cost for loans and deposits -- was 3.40% during the second quarter, expanding from 3.33% the previous quarter, but narrowing from 3.46% a year earlier.

The year-over-year decline in the net interest margin is in line with the industry trend, with the Federal Reserve's target federal funds rate in a range of zero to 0.25% since late 2008, while the central bank recently increased its purchases of long-term mortgage-backed securities, in an effort to push long-term rates down from their already historically low levels.

Kelley also said he expects Investors Bancorp to announce a dividend on common shares before the end of the year. "We have updated our model to include a $0.20 per share annual dividend," he said, "which would represent a 19% payout on our 2013 earnings estimate," of $1.04 a share.

ISBC Chart ISBC data by YCharts

Interested in more on Investors Bancorp? See TheStreet Ratings' report card for this stock.

2 of 7

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
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!


DOW 17,961.62 +156.82 0.88%
S&P 500 2,077.60 +6.95 0.34%
NASDAQ 4,778.9480 +13.5680 0.28%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs