Why BofI Is Poised to Bounce Back

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Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, consumer banking services specialist has earned a coveted five-star ranking.

With that in mind, let's take a closer look at BofI and see what CAPS investors are saying about the stock right now.

BofI facts

Headquarters (founded)

San Diego, Calif. (1999)

Market Cap

$643.7 million


Savings and loans

Trailing-12-Month Revenue

$111.9 million


CEO Gregory Garrabrants (since 2010)
CFO Andrew Micheletti (since 2001)

Return on Equity (average, past 3 years)


Cash / Debt

$152.5 million / $575.2 million


ING Bank

Sources: S&P Capital IQ and Motley Fool CAPS.

On CAPS, 99% of the 292 members who have rated BofI believe the stock will outperform the S&P 500 going forward.   

Just last month, one of those Fools, TMFInnovator, highlighted the stock's recent pullback as a potentially attractive entry point:

I think this might have been the dip I've been waiting for.

BOFI is still not cheap, but it's got a lot more potential than traditional banks. Their online business model means they can avoid the electric bill of retail branches, which allows them to pass down cost savings via fewer fees and higher interest rates. BOFI's deposit base is growing 3X faster than the aggregate of all commercial banks and is underfollowed by Wall Street.

If you want market-thumping returns, you need to put together the best portfolio you can. Of course, despite a strong five-star rating, BofI may not be your top choice.

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The article Why BofI Is Poised to Bounce Back originally appeared on Fool.com.

Fool contributor Brian Pacampara owns shares of Bank of America. The Motley Fool recommends Bank of America and BofI Holding. The Motley Fool owns shares of Bank of America and BofI Holding. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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