Based on the aggregated intelligence of 180,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, regional bank Synovus Financial has earned a respected four-star ranking.
With that in mind, let's take a closer look at Synovus and see what CAPS investors are saying about the stock right now.
Columbus, Ga. (1888)
Chairman/CEO Kessel Stelling, Jr.
Return on Equity (average, past 3 years)
Cash / Debt
$1.4 billion / $1.9 billion
BB&T Regions Financial Sun Trust Banks
Sources: S&P Capital IQ and Motley Fool CAPS.
On CAPS, 88% of the 412 members who have rated Synovus believe the stock will outperform the S&P 500 going forward.
Synovus Financial is an interesting situation with several near-term catalysts that could cause its stock to continue to outperform. According to a recent Wall Street Transcript interview with Matthew Schultheis from an investment bank called Boenning & Scattergood, a month or so ago [Synovus] sold off a huge chunk of underperforming loans. Why does this matter? Unloading these bad loans will theoretically enable [Synovus] to unlock some of its large loan loss reserves, or at least keep them from having to add as much to them going forward. Furthermore, Synovus is likely going to pay off its TARP loans in the near future ... it currently owes the government more than any other bank in the country. ... Add to this the fact that the economy and housing are improving and good things should be in store for the bank. ... I am only adding Synovus as a CAPS pick for now because I am not personally familiar enough yet with the bank accounting nuances to say that this is exactly how things are going to play out here, but this situation certainly looks very interesting.
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The article Why Synovus Financial Is Poised to Keep Rallying originally appeared on Fool.com.
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.
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