Momentum investing revolves around the idea of following a stock's recent trend in either direction. In "long context," investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.While many investors like to look for momentum i ...

Investors looking for stocks in the Banks - Foreign sector might want to consider either Bancolombia (CIB) or ICICI Bank Limited (IBN) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.The best way to find great value stocks is to pair a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system. The proven Zacks Rank puts an emphasis on earnings estimates and estimate revisions, while our Style Scores wo ...

While the proven Zacks Rank places an emphasis on earnings estimates and estimate revisions to find strong stocks, we also know that investors tend to develop their own individual strategies. With this in mind, we are always looking at value, growth, and momentum trends to discover great companies.Looking at the history of these trends, perhaps none is more beloved than value investing. This strategy simply looks to identify companies that are being undervalued by the broader market. Value investors use tri ...

Have you been paying attention to shares of Bancolombia (CIB) ? Shares have been on the move with the stock up 13.2% over the past month. The stock hit a new 52-week high of $50.6 in the previous session. Bancolombia has gained 58.5% since the start of the year compared to the 13% move for the Zacks Finance sector and the 35.7% return for the Zacks Banks - Foreign industry.What's Driving the Outperformance?The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus E ...

Core Viewpoint - The article emphasizes the importance of shareholder yield as a key metric for investors, combining dividend yield, share buybacks, and net debt reduction to assess how effectively a company returns capital to its shareholders [2][4][5]. Shareholder Yield Components - Dividends provide a steady income stream and signal management's confidence in financial health, contributing significantly to total equity returns, especially in sideways or bear markets [3][6]. - Share buybacks reduce share count, enhancing per-share metrics like earnings and cash flow, which is particularly beneficial in low-growth environments [3][4]. - Debt reduction improves balance sheet strength and reduces default risk, enhancing resilience during economic downturns, thus benefiting investors through both capital returns and improved financial positioning [4][5]. Investment Opportunities - Companies with high shareholder yield, such as Eni, BanColombia, Columbia Banking System, Donaldson, and W.P. Carey, are highlighted as attractive options for investors seeking income and capital appreciation [4][8][18]. - Eni offers a competitive dividend yield of approximately 4.46%, with a 10-time increase in dividend payout over five years, reflecting a 28.1% annualized growth rate [9][10]. - BanColombia, with an 11.49% dividend yield, has increased its payout eight times in five years, showing a 71.36% annualized growth rate [12][13]. - Columbia Banking System provides a 5.62% dividend yield, with a 7.2% annualized growth rate over two increases in five years [14][15]. - Donaldson has a 1.64% dividend yield, with a 6.26% annualized growth rate over five increases in five years [16][17]. - W.P. Carey offers a 5.53% dividend yield, having increased its payout 20 times in five years despite a negative annualized growth rate of 4.64% [18][19][20]. Financial Stability and Management - Companies with high shareholder yield tend to exhibit disciplined capital allocation and align management interests with those of investors, avoiding expensive acquisitions and value-destructive expansions [5][7]. - Empirical studies indicate that portfolios focused on shareholder yield outperform broader market indices over the long term, often with lower volatility [5][6].

Group 1 - Bancolombia's second quarter results exceeded expectations, indicating a positive performance despite an atypical year for the company [1] - The stock has shown a significant recovery from previously depressed valuations, although it is still considered cheap [1] Group 2 - The article reflects a long-term investment perspective, emphasizing the importance of knowledge compounding and strategic thinking in investment [1]

Group 1: Momentum Investing Overview - Momentum investing involves following a stock's recent trend, with the strategy of buying high and hoping to sell even higher [1] - The Zacks Momentum Style Score helps investors identify stocks with strong momentum by focusing on price changes and earnings estimate revisions [2][3] Group 2: Bancolombia (CIB) Performance - Bancolombia currently holds a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy) [4][12] - Over the past week, CIB shares increased by 0.05%, while the Zacks Banks - Foreign industry declined by 2.3% [6] - In the last quarter, CIB shares rose by 13.24%, and over the past year, they increased by 49.03%, outperforming the S&P 500's gains of 13.18% and 21.49% respectively [7] Group 3: Trading Volume and Earnings Outlook - CIB's average 20-day trading volume is 308,461 shares, indicating a bullish sign if the stock price rises with above-average volume [8] - In the past two months, two earnings estimates for CIB moved higher, increasing the consensus estimate from $6.30 to $6.60 [10]

Group 1: BanColombia (CIB) - BanColombia is Colombia's largest bank by assets and has the largest market share in deposit products and loans [1] - The Zacks Consensus Estimate for BanColombia's current year earnings has increased by 1.9% over the last 60 days [1] - BanColombia has a dividend yield of 12.2%, significantly higher than the industry average of 3.3% [1] Group 2: Tsakos Energy Navigation Ltd (TEN) - Tsakos Energy Navigation is a leading provider of international seaborne crude oil and petroleum product transportation services [2] - The Zacks Consensus Estimate for Tsakos Energy Navigation's current year earnings has increased by 86.2% over the last 60 days [2] - Tsakos Energy Navigation has a dividend yield of 5.8%, compared to the industry average of 2.1% [2] Group 3: National Grid Transco (NGG) - National Grid Transco operates in the international energy delivery business, focusing on regulated electricity and gas industries [3] - The Zacks Consensus Estimate for National Grid Transco's current year earnings has increased by 6.3% over the last 60 days [3] - National Grid Transco has a dividend yield of 5.7%, which is above the industry average of 3.3% [3]

Financial Data and Key Metrics Changes - The return on equity (ROE) increased to 17.5%, primarily due to strong net income from improved net interest margin and reduced provision expenses [11][35] - Net interest margin rebounded to 6.6%, driven by growth in both loans and investments [12][24] - Cost of risk was reported at 1.6%, with declining nonperforming loans ratios indicating enhanced asset quality [12][31] - Net income increased by 3% quarter over quarter and 24% year over year [35] Business Line Data and Key Metrics Changes - The loan portfolio represented 75% of total assets, showing a 4.4% growth over the year despite being almost flat during the quarter [19] - Consumer loans regained momentum, primarily driven by operations in Colombia, while mortgages were the fastest-growing segment [20] - Deposits grew by 2.4% in the quarter and 9.6% over the year, outpacing loan growth [22] - NEKI, the digital bank, reported loans totaling COP 1,100,000,000,000, reflecting a substantial 4.7-fold increase over the previous year [12][37] Market Data and Key Metrics Changes - Colombia remains the core market with Bancolombia leading the financial sector, holding a market share of 28% in loans and 26% in deposits [7] - Central American operations provide valuable diversification, with Banco Agricola leading in El Salvador and Banitzmo ranking second in Panama [8] Company Strategy and Development Direction - The formation of Grupo Civest aims to optimize capital allocation, increase corporate flexibility, and boost value creation [5][6] - The company focuses on expanding complementary businesses supported by customer insights and data access [6] - The strategy includes a share repurchase program to enhance shareholder value [5] Management's Comments on Operating Environment and Future Outlook - The Colombian economy is gaining momentum, with GDP growth forecasted at 2.6% for 2025 and 3% for 2026 [14] - Inflation is expected to remain above 5% by year-end, with the Central Bank maintaining a cautious stance on interest rates [15] - The company anticipates continued pressure on net interest margins but expects to manage this through a better loan mix and operational efficiencies [54] Other Important Information - The company aims to disburse COP 716,000,000,000 by 2030 to support sustainable communities and enhance productive capacities [37] - The Tier one ratio for Bancolombia standalone closed at 11%, reflecting organic capital generation [36] Q&A Session Summary Question: Update on the political landscape ahead of the presidential elections - Management noted significant polarization in Colombia and indicated that clarity on candidates will emerge by early next year [46][47] Question: Expectations for net interest margins (NIM) - Management expects NIM to remain stable, potentially reaching around 6% by year-end, influenced by inflation risks and Central Bank policies [48][49] Question: Clarification on Bancolombia unit ROE - Management clarified that the pro forma ROE for Bancolombia is in the mid-20s, while the calculated ROE based on the last twelve months of equity is around 16.5% [61][71] Question: Economics of lending in NEKI - Management reported that NEKI's average loan is around COP 2,500,000, with a cost of risk around 9-10%, indicating profitability despite the risks [80][81] Question: Sustainability of cost of funding - Management emphasized a focus on value proposition to maintain low cost of funding, with savings accounts growing significantly [92] Question: Capital distributions and buybacks - Management indicated that buybacks will continue to support dividend distributions, maintaining a strong capital structure [94]

Grupo Cibest Overview - Grupo Cibest's assets reached $375 billion, with liabilities of $333 billion and equity of $41 billion[4] - The group serves over 33 million clients and employs 33,993 individuals[4] - The company's Return on Equity (ROE) stands at 175% and Double Leverage at 105%[4] Strategic Business Model - Bancolombia S A is the leading financial institution in Colombia, serving over 16 million customers with a market share of 28% in gross loans and 26% in deposits[15] - Bancoagrícola is the largest financial institution in El Salvador, serving over 17 million customers with a market share of 25% in gross loans and deposits[10] - Banistmo is the second largest financial institution in Panama, serving over 557,619 customers with a market share of 8% in gross loans and deposits[11] - Grupo Agromercantil Holding (GAH) is the fourth largest financial institution in Guatemala, serving 617,819 clients with a market share of 10% in gross loans and 8% in deposits[9] Financial Performance 2Q25 - Total gross loans increased by 44% year-over-year and 04% quarter-over-quarter[44] - Total deposits increased by 96% year-over-year and 24% quarter-over-quarter[66] - Net Interest Margin (NIM) is at 66%[24] - The efficiency ratio is 507%[24]