With 2012 just beginning, now's a smart time to gauge how the stocks you're interested in are likely to do this year and beyond. By knowing what stock analysts and fellow investors expect from a stock, you'll be smarter about whether you should buy it for your portfolio -- or sell it if you already own it.
Today, let's take a look at Synovus Financial
Forecasts on Synovus Financial
|Median Target Stock Price||$2|
|2011 EPS Estimate||($0.17)|
|2012 EPS Estimate||$0.13|
|Expected Annual Earnings Growth, Next 5 Years||8.75%|
|CAPS Rating (out of 5)||****|
Sources: Morningstar and Motley Fool CAPS.
Will Synovus come back in 2012?
Synovus has struggled in a tough environment for regional banks, particularly in its home region of the Southeast. Trading at 66% of book value, it's easy to think of Synovus as an amazing value play -- until you look at some of its competitors. Regions Financial
The key to the future for Synovus is to improve credit quality. The bank has been able to make much lower provisions for loan losses over the past 12 months than it did during the tough years of 2009 and 2010, although current levels are still nearly 10 times what they were during the mid-2000s. By contrast, Popular
The best remedy for Synovus' problems would be a bounce in the housing market. By helping it get the rest of its bad loans off the book, a true recovery would inevitably make Synovus a better bet going forward.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. The Motley Fool owns shares of Fifth Third Bancorp and Huntington Bancshares. 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 Fool has a disclosure policy.