Sterling Bancorp (STL): Morphing Into A Value Rebound Play

Sterling Bancorp (NYSE:STL) stock enjoyed an overall uptrend of 21.74% from the beginning of 2019. The closing share price quoted for February 12, 2019 was $20.1. The 0.95% rally might have been tempting for an investor to buy at this point and in fact that would prove a good idea, as sell-side analysts think there is almost 79.1% more gain yet to come for shareholders. Analysts seemed to set $36 as highest price target on its way to greater gains. The average 12-month price target they expect from the stock is $24.45. This mean price target represents 21.64% upside over its previous closing price. The median price target they presented was $23.5 for the next 12-months, which suggests a 16.92% upside from current levels. Some analysts have a lowest price target on the stock of $20, which would mean a -0.5% gain in value.

Moving on, Sterling Bancorp (STL) last reported its December 2018 earnings. For brief highlights, it performed well in that quarter, with earnings up 33% year-over-year at $0.52. The company surprised analysts by 4 who were expecting $0.5 per share. Overall, its quarterly revenues jumped by 2% to reach $246.89 million, while it had reported $241.18 million in the same period a year ago. To see what investors should really expect from its March 2019 financial results consensus analyst estimates are calling for current quarter earnings per share of $0.49, up from $0.45 in the same quarter a year ago. However, earnings-per-share are expected to see growth of 6.62% in next year. From there, the company believes it can achieve a long-term annual earnings growth rate of 5 %. At the other end of the income statement, we have seen revenue of $1.21 billion over the trailing 12 months.

To help you decide whether it’s worth the wait (and the money), Sterling Bancorp (NYSE:STL) is currently trading at 10.29X the company’s trailing-12-month earnings per share, which represents a discount compared to the sector’s 19.62X and comes in below its industry’s 19.55X. The most popular method for valuing a stock is to study the historic Price-to-Earnings (P/E) ratio using reported earnings for the past 12 months. The EPS number for this stock in the most recent four quarters of earnings stood at $1.95. P/E ratio is so popular because it’s simple, it’s effective, and, tautologically, because everyone uses it.

The 14-day Absolute ATR (Average True Range) on Tuesday, February 12 of 2019 shows that the price on average moves $0.45. The average daily volatility is 1.92% over the past week. Low volatility is good for the stock and it means we have calm and confident investors. If you check recent Sterling Bancorp (STL) volume, you will see that it has changed to 1.32 million shares versus the average daily volume of 3.13 million shares.

When you look at the daily chart for STL, you will observe the stock held -9.05% losses in the 6-month period and maintains 28.68% distance from its most recent low. The past 5-day performance for the share stays positive at 2.19% but up 5.66% from its three-week moving average. Comparing to 50-day SMA, Sterling Bancorp shares price is now up 12%. It also closed -5.42% higher from its 200-day SMA. This is often seen as the last line of defense for long term trends to find support at, else be considered broken and/or in a bear market. The daily chart of the stock more clearly reveals the slide in prices as it closed Tuesday with a 1-month performance at 15.65%.