5 Reasons to Buy Provident Financial (PFS) Stock Right Now

Core Viewpoint - Provident Financial Services (PFS) is positioned for growth due to the acquisition of Lakeland Bancorp, with strong loan demand, a solid balance sheet, and high interest rates supporting its financials [1] Group 1: Acquisition and Growth Potential - The merger with Lakeland Bancorp has created a super-community bank, combining two complementary banking platforms in New Jersey [2] - The pro-forma combined company will have $24.5 billion in assets, $18.8 billion in loans, $18.6 billion in deposits, and total stockholders' equity of $2.3 billion, with 140 branches across New Jersey and parts of New York and Pennsylvania [3] Group 2: Earnings and Revenue Growth - Earnings growth has shown a CAGR of 5.7% over the last three to five years, with a projected decline of 5.2% in 2024, followed by a rebound of 33.8% in 2025 [5] - Total revenues have a CAGR of 5.9% from 2018 to 2023, driven by solid loan demand and high rates, with projections of a 40.3% increase this year and 24.6% in 2025 [6] Group 3: Capital Distribution and Valuation - Provident Financial has a consistent quarterly dividend of 24 cents per share, resulting in a dividend yield of 6.4% based on a closing price of $15.01 [7] - The stock appears undervalued with a price-to-earnings (F1) ratio of 9.18 and a price-to-book ratio of 0.67, both below industry averages [8] Group 4: Investment Metrics - The company has a Value Score of B, indicating it is trading at a discount, and stocks with a Style Score of A or B combined with a Zacks Rank of 1 or 2 offer the best upside potential [9]