Why Sierra Bancorp Shares Surged
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of regional bank Sierra Bancorp climbed 10% today on continued bullishness over last week's quarterly results .
So what: Sierra has had a relatively tough time bouncing back from the financial crisis, but last Monday's Q3 results -- net income more than doubled year-over-year -- continue to fuel optimism on Wall Street that management's turnaround initiatives have been gaining traction. While the net interest margin slipped 29 basis points over the year-ago period, the drop was somewhat offset by a solid increase in non-interest bearing demand deposits, as well as a shift into lower-cost deposit categories, giving investors plenty of good vibes over Sierra's growth trajectory.
Now what: Although it won't be completely smooth sailing ahead, the worst is likely over for Sierra. "While we can't state with certainty that difficult times are behind us, we can say with assurance that it has been the loyalty and dedication of our customers, shareholders, and staff that have carried us through the downturn and positioned us to once again realize our potential as a top-performing bank," CEO James Holly said in a statement. With Sierra shares up more than 60% year-to-date and trading at a price-to-book of 1.4, however, much of that potential might already be baked into the valuation.
More reliable ways to build wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.
The article Why Sierra Bancorp Shares Surged originally appeared on Fool.com.Fool contributor Brian Pacampara has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.