Bank stocks have acted strongly recently and The Bancorp is no exception. Its shares are on pace for five straight weeks of gains.
The IBD 50 Growth Stocks To Watch name broke out of a base Tuesday and reached a new high.
The Bancorp provides online payment services, institutional banking, commercial lending and specialty real estate loans. It does not have any physical branches.
On Monday, the company said it is extending its partnership with Block to provide debit and prepaid cards to Cash App users.
The IBD 50 stock ranks No. 1 out of 77 bank stocks in the Banks-Northeast group, which holds the 101st spot out of the 197 industry groups that Investor's Business Daily tracks.
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Bank Stock Ripe For The Picking
On July 7, the company increased its stock buyback to $500 million through the end of 2026.
On Tuesday, The Bancorp stock jumped in heavy volume and broke out of an early-stage cup base with a 65.84 buy point. Shares are in the 5% buy zone up to 69.13, according to MarketSurge pattern recognition.
Tuesday's jump lifted the bank stock to a record high. Shares have climbed around 28% so far this year. The stock's rapid move higher earned it the "ants indicator" on its daily chart.
And its relative strength line reached a 52-week high, as shown by the blue dot on its chart. Its 21-day exponential moving average is on the rise, reflecting its recent strength.
The Bancorp's leadership has a vested interest in the company's performance, with management owning 6% of shares. And mutual funds favor the bank stock, owning 73% of shares.
Its IBD Accumulation/Distribution Rating of B indicates moderate institutional buying over the last 13 weeks.
A 1.3 up/down volume ratio shows positive demand over the last 50 days, and its weekly volume spiked over the prior two weeks.
The Bancorp Produces Steady Profits
The Bancorp missed first-quarter earnings and sales estimates on April 24. Its first-quarter net interest income decreased 3% from the prior year. But its first-quarter loans grew to $6.38 billion from $5.46 billion a year ago.
Its pace of profit growth eased to 12% in the first quarter. But the bank's revenue growth accelerated to 42% from 7% four quarters ago.
The Street expects the company to report its second-quarter results July 24, after the market close.
Analysts now see its full-year 2025 earnings rising 24% then 29% in 2026.
The company has been a steady profit grower as seen in its Earnings Stability factor of 10 out of 99 possible – with a lower number being better for that indicator.
Lastly, it holds an excellent 98 IBD Composite Rating and a 96 Earnings Per Share Rating.
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