Key Takeaways EWBC's earnings are forecast to grow 7.4% in 2026, backed by solid liquidity and loan demand.VLY earnings are expected to jump 28.1% in 2026, aided by margin expansion and fee income efforts.FNB earnings are set to rise 14.2% in 2026, supported by new branches and inorganic growth moves.This year brought a lot of twists and turns for investors. It began on an optimistic note as the new President, Donald Trump, was projected to be business-friendly. Then came the Liberation Day tariff spectacle ...

Investors might want to bet on Valley National (VLY) , as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.The p ...

Core Viewpoint - Valley National Bancorp (VLY) shares have reached a 52-week high of $11.65, closing at $11.48, driven by optimism over potential interest rate cuts before the end of 2025. The stock has gained 31.1% over the past six months, outperforming the industry and S&P 500 Index [1][8]. Price Performance - VLY's stock performance has surpassed peers such as Fulton Financial Corporation (FULT) and Webster Financial Corporation (WBS), with FULT gaining 5.8% and WBS 16.2% in the same timeframe [2]. Factors Supporting VLY's Performance - **Robust Organic Growth**: VLY's net revenues have shown a compound annual growth rate (CAGR) of 10.7% from 2019 to 2024, supported by rising loan balances [5]. - **Fee Income Initiatives**: The company is enhancing fee income through investments in treasury solutions, foreign exchange, and syndication platforms, which are expected to support revenue growth [6]. - **Revenue Growth Expectations**: The Zacks Consensus Estimate for VLY's revenues in 2025 and 2026 is $2.01 billion and $2.21 billion, indicating year-over-year growth rates of 8.3% and 9.6% respectively [9]. - **Inorganic Growth**: VLY has a solid balance sheet and has made strategic acquisitions, including Bank Leumi Le-Israel B.M.'s U.S. banking arm in 2022, which are expected to diversify revenues [10][11]. - **Improving Margins**: Despite a decline in net interest margin (NIM) in 2023 and 2024, VLY anticipates NIM improvement due to stabilizing deposit costs and aims for a target of over 3.1% NIM in Q4 2025 [11][12]. - **Capital Distributions**: VLY has maintained a quarterly dividend of 11 cents per share since 2018 and has a share repurchase program with authorization for up to 25 million shares [12][13]. Challenges Facing VLY's Growth - **Elevated Expense Base**: The company's expenses have increased at a CAGR of 11.9% over the past five years, primarily due to higher salaries and occupancy costs, which are expected to remain high as VLY continues to expand [14]. - **Loan Portfolio Risks**: A significant portion of VLY's loan portfolio is exposed to commercial real estate (CRE) and residential mortgage loans, with 58.2% and 11.8% of total loans respectively. The company has been selective in new CRE loan originations to manage risks [16][18]. Earnings Growth Prospects - Analysts are optimistic about VLY's earnings growth, with the 2025 earnings estimate of 96 cents indicating a year-over-year growth of 54.8%, and the 2026 estimate of $1.23 suggesting a rise of 28.1% [20].

Core Insights - Valley National Bancorp (VLY) is a regional bank with a focus on highly populated areas across the United States [1] Group 1: Company Overview - Valley National Bancorp operates branches throughout the United States, emphasizing locations in densely populated regions [1] - The bank offers common shares along with three different types of preferred shares [1] Group 2: Investment Focus - The current investment strategy includes income investing through common shares, preferred shares, or bonds [1] - The author aims to publish two articles per week, focusing on income investing and broader economic topics [1]

Core Insights - Valley National Bancorp (VLY) is a regional bank with a focus on highly populated areas across the United States [1] Group 1: Company Overview - Valley National Bancorp operates branches throughout the United States, emphasizing locations in densely populated regions [1] - The bank offers common shares along with three different types of preferred shares [1] Group 2: Investment Focus - The current investment strategy includes income investing through common shares, preferred shares, or bonds [1] - The author aims to publish two articles per week, focusing on income investment and broader economic topics [1]

Core Viewpoint - Valley National (VLY) shares have increased by 2.1% over the past four weeks, closing at $10.43, with a potential upside indicated by Wall Street analysts' price targets suggesting a mean estimate of $13.46, representing a 29.1% upside [1] Price Targets and Estimates - The average of 13 short-term price targets ranges from a low of $11.00 to a high of $15.00, with a standard deviation of $1.25, indicating variability among analysts [2] - The lowest estimate suggests a 5.5% increase from the current price, while the highest estimate indicates a 43.8% upside [2] Analyst Sentiment and Earnings Estimates - Analysts show a consensus that VLY will report better earnings than previously estimated, which is a positive indicator for potential stock upside [4] - Over the last 30 days, the Zacks Consensus Estimate for the current year has increased by 2%, with five estimates moving higher and no negative revisions [12] - VLY holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimates [13] Implications of Price Targets - While price targets are often viewed skeptically due to their potential to mislead investors, a tight clustering of targets (low standard deviation) suggests a high degree of agreement among analysts regarding the stock's price movement [9] - The direction implied by the consensus price target may serve as a useful guide for further research into the stock's fundamental drivers [14]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest in AI technologies now [1][13] - The energy demands of AI technologies are highlighted, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2][3] Investment Opportunity - A specific company is presented as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][6] - This company is not a chipmaker or cloud platform but is positioned to profit from the surge in electricity demand driven by AI data centers [3][7] Energy Infrastructure - The company owns significant nuclear energy infrastructure, making it central to America's future power strategy [7] - It is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7][8] Financial Position - The company is noted for being debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization [8][10] - It has an equity stake in another AI-related company, providing indirect exposure to multiple growth opportunities in the AI sector [9][10] Market Perception - Wall Street is beginning to recognize this company as it benefits from various market trends without the high valuations typical of many energy and utility firms [8][10] - The company is trading at less than 7 times earnings, indicating a potentially undervalued investment opportunity [10] Future Trends - The ongoing AI infrastructure supercycle, the onshoring boom due to tariffs, and a surge in U.S. LNG exports are all trends that the company is well-positioned to capitalize on [14] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of investing in AI-related companies [12]

Financial Position - As of September 30, 2025, the company reported total assets of approximately $63.0 billion, total net loans of $48.7 billion, total deposits of $51.2 billion, and total shareholders' equity of $7.7 billion[165]. - Total deposit balances increased by $450.5 million to $51.2 billion, primarily due to inflows from commercial and government deposits[167]. - Liquid assets totaled $5.7 billion, representing 9.9% of interest-earning assets, an increase from $5.4 billion or 9.3% at the end of the previous quarter[167]. - Total investment securities rose by $231.7 million to $7.7 billion, accounting for 12.3% of total assets, driven by purchases of residential mortgage-backed securities[167]. - The company's total risk-based capital ratio was 13.83% as of September 30, 2025, up from 13.67% at June 30, 2025[168]. - Shareholders' equity reached approximately $7.7 billion as of September 30, 2025, representing 12.2% of total assets, an increase of approximately $260.2 million during the nine months ended September 30, 2025[312]. Income and Earnings - Net income for the third quarter of 2025 was $163.4 million, or $0.28 per diluted common share, compared to $97.9 million, or $0.18 per diluted common share, for the same quarter in 2024, reflecting a $65.5 million increase[168]. - Net interest income increased by $35.7 million, driven by lower interest rates on deposit products and additional income from investment securities[172]. - Non-interest income rose by $4.2 million, with increases in net gains on loan sales and service charges, partially offset by lower litigation settlement income[172]. - Non-interest expense increased by $12.5 million, primarily due to higher salary and employee benefits, and professional fees[172]. - The effective tax rate for the third quarter 2025 was 22.2%, a slight decrease from 22.7% in the third quarter 2024, mainly due to larger investments in tax credits[218]. - The company reported a net income of $163.4 million (GAAP) for Q3 2025, compared to $97.9 million in Q3 2024, marking a 66.8% increase[187]. Loan and Credit Quality - The allowance for credit losses (ACL) for loans was $598.6 million, representing 1.21% of total loans, with an anticipated range of 1.20% to 1.25% through December 31, 2025[167]. - The net loan charge-offs for the third quarter of 2025 were $14.6 million, a decrease from $37.8 million in the previous quarter[167]. - Non-performing assets (NPAs) increased by $66.6 million, or 18.4%, to $427.3 million at September 30, 2025, primarily due to increases in non-accrual commercial real estate and construction loans[291]. - NPAs as a percentage of total loans rose to 0.86% at September 30, 2025, compared to 0.73% at June 30, 2025[291]. - The provision for credit losses for loans was $19.2 million in the third quarter of 2025, down from $37.8 million in the second quarter of 2025 and $75.0 million in the third quarter of 2024[311]. Asset and Liability Management - Average interest-earning assets rose to $58.6 billion in Q3 2025, up $971.5 million from Q3 2024, driven by a $1.5 billion increase in average taxable investments[190]. - Average interest-bearing liabilities increased to $42.7 billion in Q3 2025, up $20.7 million from Q3 2024, primarily due to a rise in average interest-bearing deposits[191]. - The bank's loans to deposits ratio was 96.3% as of September 30, 2025, down from 97.5% on December 31, 2024[262]. - Total liquid assets increased to $5,748,032 thousand as of September 30, 2025, compared to $5,505,586 thousand on December 31, 2024[263]. - The average balance of loans for Q3 2025 was $49.27 billion, with interest income of $733.21 million, yielding an average rate of 5.95%[196]. Market and Economic Conditions - The U.S. real GDP increased at an estimated annual rate of 3.8% in the third quarter of 2025, compared to 3.0% in the second quarter[170]. - The GDP growth forecast is 0.8% for Q4 2025, increasing to 2.0% by late 2027[307]. - The unemployment rate is projected at 4.4% for Q4 2025, with a range of 4.4% - 4.8% for the remainder of the forecast period[307]. - The inflation rate is expected to grow to 3.1% in Q4 2025, decreasing to near 2.0% by early 2027[307]. Capital Management - Valley exceeded all capital adequacy requirements as of September 30, 2025, maintaining a common equity Tier 1 capital ratio above the required 4.5%[314]. - Common Equity Tier 1 Capital for Valley was $5,472,775, representing a ratio of 11.00% as of September 30, 2025, compared to $5,230,632 and 10.82% at December 31, 2024[315]. - Cash dividends declared remained at $0.33 per common share for both the nine months ended September 30, 2025, and 2024, with the Board committed to shareholder value considerations[317]. - Valley's market risk is primarily composed of interest rate risk, with potential losses arising from changes in interest rates and other market factors[319].

Group 1: Bread Financial (BFH) - The company is a tech-forward financial services provider offering personalized payment, lending, and saving solutions [1] - The Zacks Consensus Estimate for its current year earnings has increased by 7.3% over the last 60 days [1] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 1.3%, compared to the industry average of 0.0% [1] Group 2: CNA Financial (CNA) - CNA Financial offers commercial property and casualty insurance products primarily in the United States [2] - The Zacks Consensus Estimate for its current year earnings has increased by 2.2% over the last 60 days [2] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4.1%, compared to the industry average of 0.7% [2] Group 3: Valley National Bancorp (VLY) - Valley National Bancorp provides a range of financial services including commercial, retail, insurance, and wealth management products [3] - The Zacks Consensus Estimate for its current year earnings has increased by 1.1% over the last 60 days [3] - The company has a Zacks Rank of 1 (Strong Buy) and a dividend yield of 4%, compared to the industry average of 2.7% [3]

Core Insights - Valley National Bancorp (NASDAQ: VLY) has received a "Buy" rating from Cowen & Co., with an increased price target from $14 to $15, indicating strong confidence in the stock's future performance [1][5] - The third-quarter earnings report revealed a significant 55.6% increase in profit, driven by higher net interest income and reduced provisions, leading to an adjusted earnings per share of $0.28, surpassing the Zacks Consensus Estimate of $0.26 [2][5] - The company's stock price has increased by 1.18%, currently trading at $11.11, with a market capitalization of approximately $6.22 billion [4][5] Financial Performance - Valley National's financial results were supported by both net interest and non-interest income, which helped offset rising expenses [3] - Despite a slight decline in loan balances, the company experienced deposit growth and improvements in capital ratios and profitability metrics [3] - Excluding non-core income and charges, net income reached $163.4 million, reflecting a 66.9% increase compared to the previous year [3]