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Upgrade Insight: Associated Banc-Corp and Shore Bancshares Rise

Positive ratings for Associated Banc-Corp and Shore Bancshares boost investor outlook. Both companies exhibit strong short-term earnings growth potential and favorable valuations.

Date: 
AI Rating:   7

Upgrade Overview
Recent recommendations based on Martin Zweig's Growth Investor model indicate significant upgrades in ratings for both Associated Banc-Corp (ASB) and Shore Bancshares Inc (SHBI) based on their robust fundamentals and improved valuations.

Associated Banc-Corp (ASB)
The upgrade reflects a score increase from 54% to 85%. Key metrics that contributed positively include:

  • P/E Ratio: Pass
  • Revenue Growth in relation to EPS Growth: Pass
  • Sales Growth Rate: Pass
  • Current Quarter Earnings: Pass
  • Quarterly Earnings One Year Ago: Pass
  • Positive Earnings Growth Rate for Current Quarter: Pass
  • EPS Growth for Current Quarter must be greater than prior 3 quarters: Pass
  • EPS Growth for Current Quarter must be greater than Historical Growth Rate: Pass

However, earnings persistence and long-term EPS growth were marked as fails, indicating potential risks regarding sustainable growth.

Shore Bancshares Inc (SHBI)
Similar to ASB, SHBI saw its rating rise from 69% to 85%. It passed numerous growth indicators, including:

  • P/E Ratio: Pass
  • Revenue Growth in relation to EPS Growth: Pass
  • Sales Growth Rate: Pass
  • Current Quarter Earnings: Pass
  • Quarterly Earnings One Year Ago: Pass
  • Positive Earnings Growth Rate for Current Quarter: Pass
  • EPS Growth for Current Quarter must be greater than prior 3 quarters: Pass
  • EPS Growth for Current Quarter must be greater than Historical Growth Rate: Pass

Again, similar concerns over earnings persistence and long-term EPS growth were noted.

Both banks exhibit promising short-term growth potential and could attract increased investor interest. However, their long-term growth sustainability may affect investor sentiment negatively. Investors might wish to tread carefully, assessing both positive earnings signals in the short term while also taking into account the identified weaknesses in earnings persistence and long-term growth prospects.

Stocks:  ASB SHBI