First Citizens Bancshares, Tuesday's pick for IBD 50 Growth Stocks To Watch, is nearing a new buy point. That makes FCNCA stock one of the best bank stocks to watch in today's market.
North Carolina-based First Citizens is the holding company for First Citizens Bank, which operates over 500 branches in 23 states.
During the regional banking crisis back in March, First Citizens purchased all the deposits and loans for SVB Financial's Silicon Valley Bank. The transaction included $72 billion of Silicon Valley deposits at a discount of $16.5 billion. The FDIC will retain roughly $90 billion in assets and securities in receivership for deposition.
On Oct. 26, First Citizens reported strong earnings and sales that topped Wall Street's estimates. Amplified by the Silicon Valley Bank purchase, the bank earned $55.92 a share on revenue of $2.6 billion, year-over-year increases of 169% and 112%, respectively.
Such potent growth is quite rare among regional banks. In the Southeast banks industry group, the majority of 73 banks had declining profits the past two quarters. But profit growth is expected to come back to earth next year: Analysts' consensus estimate for 2024 EPS is 11% growth after an estimated 126% jump this year.
Coupled with strong long-term earnings growth, FCNCA stock boasts a best-possible Earnings Per Share Rating of 99, according to IBD Stock Checkup. This rating takes into account earnings growth and profit stability over the past three years. The two most recent quarters are weighted more heavily.
FCNCA stock also has a best-possible 99 IBD Composite Rating after a tremendous stock price move since March. That fundamental and technical strength makes First Citizens one of the best stocks to watch.
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Bank Stocks To Watch: FCNCA Stock Eyes Buy Point
First Citizens stock is rapidly approaching a cup-with-handle buy point at 1,450.56, per IBD MarketSmith pattern recognition. In recent weeks, the stock bullishly regained its 50-day line and is now trading just 2% away from the buy trigger, after falling 0.5% midday Tuesday.
Bullishly, the relative strength line hit a new high in late October, confirming the strength of the stock's recent advance. A strong RS line during the early stages of a new uptrend is a big positive.
With the stock market outlook back in a confirmed uptrend, investors should be their raising market exposure through the buying of strong breakouts. IBD recommends an exposure level of 40% to 60%, according to the Big Picture column.
Best Stocks To Buy And Watch
Three recent IBD 50 Growth Stocks To Watch picks are among the best stocks to buy and watch.
| Company | Symbol | Buy point | Type of base |
|---|---|---|---|
| Deckers Outdoor | 568.47 | Flat base | |
| Lululemon Athletica | 406.94 | Flat base | |
| Qualys | 154.85 | Cup with handle |
Source: IBD Data As Of Nov. 7, 2023
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