Core Viewpoint - The article emphasizes the importance of identifying sustainable trends in stock prices for short-term investing, highlighting that while trends can be profitable, ensuring their longevity is challenging [1][2]. Group 1: Stock Performance - Citizens Community Bancorp, Inc. (CZWI) has shown a solid price increase of 14.5% over the past 12 weeks, indicating strong investor interest [4]. - The stock has also maintained a price increase of 2.1% over the last four weeks, suggesting that the upward trend is still intact [5]. - CZWI is currently trading at 96.6% of its 52-week high-low range, indicating a potential breakout [5]. Group 2: Fundamental Strength - CZWI holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises [6]. - The stock has an Average Broker Recommendation of 1 (Strong Buy), reflecting high optimism from the brokerage community regarding its near-term price performance [7]. Group 3: Investment Strategy - The article suggests using the "Recent Price Strength" screen to identify stocks like CZWI that are on an uptrend supported by strong fundamentals [3][8]. - It also mentions that there are over 45 Zacks Premium Screens available for investors to find stocks that align with their investment strategies [8].

Financial Performance - For the three months ended September 30, 2024, net interest income decreased by $0.8 million compared to the same period in 2023, primarily due to higher deposit costs and customer account shifts to higher-cost certificates [225]. - Net income for the three months ended September 30, 2024, was $3.3 million, or $0.32 per diluted share, compared to $2.5 million, or $0.24 per diluted share for the same period in 2023 [230]. - Non-interest income increased by $0.4 million in the third quarter of 2024, mainly due to a $0.5 million higher gain on the sale of loans [227]. - For the nine months ended September 30, 2024, net interest income decreased by $1.8 million, with interest-bearing liabilities costs rising from 2.46% in 2023 to 3.18% in 2024 [231][232]. - Non-interest income for the nine months ended September 30, 2024, increased by $0.3 million, driven by higher gains on loan sales and service charges [234]. - Non-interest expense for the nine months ended September 30, 2024, increased by $1.6 million, largely due to higher compensation expenses related to merit increases and incentive costs [235]. Credit Losses - The total benefit for credit losses for the third quarter of 2024 was $0.4 million, compared to a negative provision of $0.3 million for the same quarter in 2023 [226]. - The total benefit for credit losses for the nine months ended September 30, 2024, was $2.725 million, compared to a provision of $0.175 million for the same period in 2023 [233]. - The company continues to monitor non-performing loan relationships and will adjust the allowance for credit losses as necessary based on changing conditions [261]. - The allowance for credit losses (ACL) on loans at the end of the period is $21,000 thousand, down from $21,178 thousand at the beginning of the period [297]. - Nonperforming assets rose to $17.1 million as of September 30, 2024, compared to $15.4 million at December 31, 2023, primarily due to one agricultural real estate loan moving to nonaccrual status [305]. - Total nonperforming loans (NPLs) were $15.6 million at September 30, 2024, up from $13.6 million at December 31, 2023 [304]. Interest Income and Margin - Net interest income for the three months ended September 30, 2024, was $11.3 million, a decrease from $12.1 million for the same period in 2023 [245]. - The net interest margin for the three-month period ended September 30, 2024, decreased to 2.63%, compared to 2.79% for the same period in 2023 [245]. - For the nine months ended September 30, 2024, net interest income was $34.8 million, down from $36.6 million for the same period in 2023 [246]. - The net interest margin for the nine-month period ended September 30, 2024, was 2.71%, compared to 2.85% for the same period in 2023 [248]. - The interest rate spread for the three months ended September 30, 2024, was 1.99% compared to 2.26% for the same period in 2023 [249]. - The interest rate spread for the nine months ended September 30, 2024, was 2.09%, down from 2.38% for the same period in 2023 [250]. Tax and Regulatory - Provision for income taxes decreased to $0.9 million in the third quarter of 2024, down from $2.5 million in the same quarter of 2023, primarily due to a decrease in the effective tax rate [228]. - The effective tax rate decrease in 2024 is attributed to a Wisconsin state budget change providing tax exemptions on income from certain loans [273]. - The company reported a nine-month total of $3.0 million in income taxes compared to $4.9 million in the same period last year [273]. - Total capital to risk-weighted assets ratio was 15.0% as of September 30, 2024, exceeding the "Well Capitalized" threshold of 8.0% [341]. - Tier 1 capital to risk-weighted assets ratio was 13.8% as of September 30, 2024, above the required minimum of 6.0% [341]. Assets and Liabilities - Cash and cash equivalents decreased by $0.5 million to $36.6 million as of September 30, 2024, from $37.1 million at December 31, 2023 [274]. - Total loans outstanding decreased by $36.0 million to $1.42 billion as of September 30, 2024, from $1.46 billion at December 31, 2023 [282]. - The loan portfolio composition shows real estate loans at $730.5 million (51.3%) as of September 30, 2024, down from $750.5 million (51.4%) at December 31, 2023 [282]. - Total deposits increased by $1.1 million to $1.52 billion as of September 30, 2024, with consumer deposits rising by $22.1 million [313]. - The composition of the deposit portfolio was 56% consumer, 28% commercial, 12% public, and 4% brokered deposits as of September 30, 2024 [314]. Shareholder and Equity - Stockholders' equity increased to $180.1 million as of September 30, 2024, from $173.3 million at December 31, 2023, driven by net income of $11.0 million and unrealized gains of $3.5 million [329]. - The company repurchased 223 thousand shares in Q3 2024 at an average price of $12.91 per share, totaling 382 thousand shares repurchased in the nine-month period at an average price of $12.32 per share [330]. Interest Rate Risk - Interest rate risk is the most significant market risk for the company, influenced by changes in market interest rates and economic conditions [343]. - The projected change in net interest income at +300 basis points is a decrease of 11% at September 30, 2024, compared to a decrease of 13% at December 31, 2023 [351]. - The overall interest rate sensitivity is assessed through net interest income shock analysis over the next 12 months [350]. - The company acknowledges that actual values may differ from projections if market conditions vary from the assumptions used [352].

Citizens Community Bancorp, Inc. (CZWI) came out with quarterly earnings of $0.32 per share, beating the Zacks Consensus Estimate of $0.27 per share. This compares to earnings of $0.24 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 18.52%. A quarter ago, it was expected that this company would post earnings of $0.27 per share when it actually produced earnings of $0.36, delivering a surprise of 33.33%. Over the last four qua ...

Earnings Performance - Third quarter 2024 earnings were $3.3 million, or $0.32 per diluted share, a decrease from $3.7 million, or $0.35 per diluted share in the second quarter of 2024, but an increase from $2.5 million, or $0.24 per diluted share in the third quarter of 2023[1][4]. - Net income attributable to common stockholders was $3,286 million, an increase from $2,498 million year-over-year[41]. - Basic earnings per share remained at $0.32, consistent with the previous quarter[41]. - The company reported GAAP earnings after income taxes of $3,286 million for the current quarter[50]. - The company reported GAAP earnings after income taxes of $3,286,000 for the three months ended September 30, 2024, compared to $2,498,000 for the same period last year, marking a 31.6% increase[55]. Income and Expenses - Net interest income decreased by $0.3 million to $11.3 million in the third quarter of 2024, down from $11.6 million in the second quarter of 2024 and $12.1 million in the third quarter of 2023[5]. - Non-interest income increased by $1.0 million in the third quarter of 2024, driven by a $0.5 million higher gain on sale of loans and a $0.6 million lower net loss on equity securities[8]. - Non-interest expense rose to $10.4 million in the third quarter of 2024, an increase of $122 thousand from the previous quarter and $452 thousand from the same quarter last year[29]. - Non-interest income totaled $2,921 million, compared to $1,913 million in the previous quarter[41]. - Total non-interest expense rose to $10,421 million, compared to $10,299 million in the prior quarter[41]. Asset and Deposit Management - Total deposits increased by $1.1 million to $1.52 billion during the third quarter of 2024, despite a $30.1 million decrease in brokered deposits[9][22]. - Total deposits as of September 30, 2024, were $1,520.67 million, a slight increase from $1,519.54 million on June 30, 2024[24]. - Uninsured and uncollateralized deposits increased to $267.1 million, or 18% of total deposits, as of September 30, 2024, up from $246.7 million, or 16% of total deposits, at June 30, 2024[25]. - Total deposits as of September 30, 2024, were $1,289,069,000, an increase from $1,209,688,000 for September 30, 2023[46]. - Total deposits reached $1,272,173 million, with a net interest income contribution of $28,712 million[47]. Credit Quality - Nonperforming assets rose to $17.1 million at September 30, 2024, compared to $10.3 million at June 30, 2024, primarily due to one agricultural real estate loan[11][20]. - The allowance for credit losses on loans decreased to $21.0 million, representing 1.47% of total loans, compared to 1.48% at June 30, 2024[17]. - Nonperforming assets increased to $17,144,000 as of September 30, 2024, compared to $15,473,000 for September 30, 2023, reflecting a rise in nonaccrual loans[45]. - The ratio of nonperforming loans (NPLs) to total loans was 1.09% as of September 30, 2024, up from 1.00% for September 30, 2023[45]. Financial Ratios - The net interest margin was 2.63% for the third quarter of 2024, compared to 2.72% in the previous quarter and 2.79% in the third quarter of 2023[6]. - The efficiency ratio remained stable at 72% for both the third quarter of 2024 and the previous quarter[12]. - The effective tax rate was 21.48% for the third quarter of 2024, down from 22.1% in the previous quarter and significantly lower than 50.5% in the third quarter of 2023[10]. - Return on average assets (annualized) was 0.72%, while return on average equity (annualized) was 7.34%[49]. - The average yield on loans receivable was 5.60% for the three months ended September 30, 2024[46]. Shareholder Value - Book value per share improved to $17.88 at September 30, 2024, up from $17.10 at June 30, 2024, and $15.80 at September 30, 2023[3]. - The company repurchased 223 thousand shares of common stock in the third quarter of 2024 at an average price of $12.91 per share, with 333 thousand shares remaining under the repurchase authorization plan[26]. - Tangible book value per share increased to $14.64, up from $13.91 in the previous quarter[53]. - Total stockholders' equity reached $180,149,000 as of September 30, 2024, compared to $165,402,000 on September 30, 2023, reflecting a year-over-year increase of 8.3%[55]. - Tangible common equity as a percent of tangible assets increased to 8.35% as of September 30, 2024, up from 7.34% a year earlier[54].

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the s ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock ali ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate re ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers. Of these, value investing is easily one of the most popular ways to find great stocks in any market environment. Value investors use fundamental analysis and traditional va ...

Core Viewpoint - Citizens Community Bancorp, Inc. (CZWI) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks rating system is based on the Zacks Consensus Estimate, which aggregates EPS estimates from sell-side analysts for the current and following years [2]. - For the fiscal year ending December 2024, Citizens Community Bancorp is expected to earn $1.30 per share, reflecting a 1.6% increase from the previous year [9]. - Over the past three months, the Zacks Consensus Estimate for Citizens Community Bancorp has increased by 6.6%, indicating a positive trend in earnings estimates [9]. Impact on Stock Price - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [5]. - The upgrade to Zacks Rank 1 suggests that the improving earnings outlook for Citizens Community Bancorp could lead to increased buying pressure and a rise in its stock price [4][6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of Citizens Community Bancorp to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [11].

Financial Performance - For the six months ended June 30, 2024, net income was $7.8 million, or $0.75 per diluted share, compared to $6.9 million, or $0.66 per diluted share for the same period in 2023[203]. - Net interest income for the six months ended June 30, 2024, was $23.5 million, a decrease from $24.5 million for the same period in 2023[215]. - Non-interest income decreased by $1.0 million in the second quarter of 2024, primarily due to lower gains on loan sales and higher losses on securities[201]. - Non-interest expenses increased by $0.5 million in the second quarter of 2024, primarily due to higher compensation expenses and inflationary increases[201]. - The effective tax rate decreased to 3.4% in the second quarter of 2024, down from the previous year, due to a tax exemption on income from Wisconsin commercial and agricultural loans[202]. Credit Losses - The total benefit for credit losses was $1.525 million for the second quarter of 2024, compared to a provision of $0.45 million for the same quarter in 2023[200]. - The negative provision for credit losses for the six months ended June 30, 2024, was $2.325 million, compared to a provision of $0.5 million for the same period in 2023[205]. - Total benefit for credit losses in Q2 2024 was $1.525 million, compared to a provision of $0.45 million in Q2 2023, driven by loan portfolio decreases and credit quality improvements[227]. - For the six months ended June 30, 2024, the total benefit for credit losses was $2.325 million, compared to a provision of $0.5 million for the same period in 2023, reflecting similar factors[228]. Interest Income and Expenses - Net interest income for the second quarter of 2024 decreased by $0.1 million to $11.6 million compared to the same period in 2023[199][214]. - The cost of interest-bearing liabilities increased from 2.31% for the six months ended June 30, 2023, to 3.14% for the same period in 2024[204]. - The net interest margin for the six months ended June 30, 2024, was 2.75%, down from 2.88% in the prior year[216]. - The average yield on loans for the six months ended June 30, 2024, was 5.57%, compared to 5.01% in 2023[220]. - The interest rate spread for the six months ended June 30, 2024, was 2.14%, down from 2.45% in the previous year[220]. Asset and Liability Management - The average interest-earning assets for the six months ended June 30, 2024, totaled $1.72 billion, generating interest income of $45.1 million, compared to $1.71 billion and $40.5 million in 2023[220]. - The average interest-bearing liabilities for the six months ended June 30, 2024, were $1.39 billion, with interest expense of $21.7 million[220]. - The average interest-earning assets to average interest-bearing liabilities ratio improved to 1.24 for the six months ended June 30, 2024, from 1.23 in 2023[220]. - The company has adopted asset and liability management policies to align maturities and re-pricing terms of interest-earning assets and liabilities[297]. Loan Performance - Total loans outstanding decreased by $32.2 million to $1.43 billion as of June 30, 2024, from $1.46 billion at December 31, 2023[247]. - The average outstanding loan balance was $1,439,535 thousand for the three months ended June 30, 2024, compared to $1,458,558 thousand for the three months ended December 31, 2023, indicating a decline of about 1.3%[256]. - Total recoveries of loans previously charged off were $16 thousand for the three months ended June 30, 2024, compared to $270 thousand for the three months ended December 31, 2023[256]. - The ACL for Consumer Installment loans at the end of the period was $244 thousand, down from $275 thousand at December 31, 2023[257]. - The ACL for Commercial/Agricultural Real Estate loans decreased to $17,033 thousand as of June 30, 2024, from $18,784 thousand at December 31, 2023[257]. Deposits and Liquidity - Total deposits increased to $1.26 billion for the six months ended June 30, 2024, from $1.16 billion in the same period last year[220]. - Total deposits decreased by $7.9 million to $1.52 billion during the quarter ended June 30, 2024, with a notable decrease in seasonal public deposits by $19.5 million[272]. - Brokered deposits increased by $12.8 million, largely due to new brokered CDs of $40 million replacing $30 million of maturing brokered CDs[272]. - The liquidity ratio remained flat at 11.4% as of June 30, 2024, compared to December 31, 2023[285]. - The company has an unused borrowing capacity of approximately $416.1 million under the FHLB borrowing arrangement as of June 30, 2024[281]. Capital and Equity - Stockholders' equity increased to $176.0 million at June 30, 2024, from $173.3 million at December 31, 2023, driven by net income of $7.8 million[283]. - The company's Tier 1 capital ratio was 13.7% as of June 30, 2024, exceeding the required minimum of 6.0%[293]. - Total capital to risk-weighted assets was 15.0% as of June 30, 2024, above the required minimum of 8.0%[293]. - The company is categorized as "Well Capitalized" under Prompt Corrective Action provisions as of June 30, 2024[293]. Market Risks - Interest rate risk is identified as the most significant market risk affecting the company's operations[295]. - Projected change in net interest income at +300 basis points is estimated to be a decrease of 10% as of June 30, 2024[302]. - The company focuses on originating shorter-term secured loans and variable rate loans to manage interest rate risk[298].