IBD Stock Of The Day: This Online Bank Is A Buy As Financial Giants Stumble

BofI Holding (BOFI) the IBD Stock of the Day, is in buy range after a recent high-volume breakout. The online bank stock has performed well as U.S. financial giants such as JPMorgan Chase (JPM) and Bank of America (BAC) have struggled since the February market correction.


The financial holding company shaped the world of online-only banking, launching Bank of Internet amid the dot-com bust in July 2000.

Its main holdings include BofI Federal Bank, which finances single and multifamily homes, targets small-to-medium businesses, and offers commercial and industrial lending.

BofI continues to be primarily internet-based with one physical branch in San Diego. The company has two quarters of accelerating earnings growth, capped off with a double-digit surge in the latest quarter.

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BofI Holding stock cleared a 43.60 flat-base buy point Wednesday. Volume tracked 66% above average, signaling strong institutional demand. Following a pullback in mild volume Thursday, BofI shares rose 1% to 44.44 on the stock market today.

Above-average weekly volume, higher than the prior week, backs this IBD 50 stock breakout. The bank stock is on track for a 7% weekly gain.

BofI Holding Fundamentals

BofI Holding boasts a top-notch IBD Composite Rating of 96. Its EPS Rating is a strong-but-not-stellar 91.

A price-to-earnings ratio of 19.3 should please investors who like cheap stocks. That P/E compares with 20.5 for the S&P 500 and 19.7 for its industry, according to Morningstar.

Notably, BofI posted only one down week during the February market correction. It continues to stay strong. That’s in contrast to the nation’s biggest banks including JPMorgan Chase, Bank of America, Citigroup (C) and Goldman Sachs (GS). Those stocks have continued to struggle since then.

BofI Outlook

BofI stock has almost doubled in value over the last year, a potential headwind for future gains.

Per Zacks, the consensus analyst view calls for EPS of $2.51 in fiscal year 2018, ramping up 27% to $3.18 in 2019.


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The post IBD Stock Of The Day: This Online Bank Is A Buy As Financial Giants Stumble appeared first on Investor's Business Daily.

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