The Bancorp is poised to break into new high ground after three weeks of tight closes. Shares are hovering in a buy zone above an entry at 78.50. The bank stock is Thursday's selection for IBD 50 Stocks To Watch.
The stock is just a notch below its all-time high of 80.16, according to IBD MarketSurge. The relative strength line is beginning to tick higher and supports the recent breakout.
The Bancorp has been reporting accelerating revenue for four quarters now. Earnings growth has been steady, as well.
During the second quarter, earnings grew 21% to $1.27 per share, and total revenue rose 10.8% to $138 million. Earnings, however, were shy of analyst expectations of $1.28 per share, according to FactSet data. Revenue beat the $166 million estimate.
Shares broke out from an early-stage cup-with-handle base at a buy point of 65.84 on July 15, and pulled back to their 21-day moving average on July 25 after quarterly results before rallying again.
During its June-ended quarter, the company bought back 753,898 shares of its common stock at an average price of $49.75 per share.
The Bancorp provides regional banking services. It says it's the No. 1 issuer of prepaid cards and the sixth largest issuer of debit cards in the U.S.
In addition to payment tools, the company provides lending and banking services to financial professionals, small business owners, and real estate companies.
Bank Stock On IBD Leaderboard
The Bancorp is a holding on the IBD Leaderboard and has a nearly-ideal Composite Rating of 98. Its strong record of earnings growth has given the stock an impressive Earnings Per Share Rating of 96. Shares have outperformed 91% of other stocks in the Investor's Business Daily database over the past 52 weeks.
Mutual funds own 76% of outstanding shares. The stock sports an Accumulation/Distribution Rating of A. The metric tracks the price and volume action over the past 13 weeks and indicates institutional participation.
The Up/Down Volume Ratio – another measure of demand for the stock over the past 50 days – stands at an outstanding 2.1.
In the IBD mutual fund index, the Invesco Discovery Fund and the Columbia Small-Cap Growth Fund hold shares of the bank stock.
The Bancorp leads the banks-northeast group, one of IBD's 197 industry groups.
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