2024-05-06 03:31:02 ET
Summary
- New York Community Bancorp is set to generate positive EPS of $0.35 to $0.40 in 2025.
- NYCB.PR.U is currently undervalued with a high 8.7% yield on cost and trading far below their $50 per share liquidation value.
- The bank's new management team has a profitability plan focused on growing its deposit base and reducing the commercial real estate portfolio.
New York Community Bancorp's ( NYCB ) 2024 started off being defined by intense disruption with the regional bank at one point described by its bears as being on the precipice of FDIC receivership. The bank's fiscal 2024 first-quarter earnings were published in the shadow of the receivership of Philadelphia-based Republic First ( FRBK ) and as consumer inflation has persisted above the Fed's 2% target. This has discombobulated previous investor dovishness for the pathway of interest rate cuts, with the CME FedWatch Tool placing two rate cuts for a Fed funds rate of 4.75% to 5.00% as the most likely outcome to exit 2024. Fixed-income securities like preferreds have positive duration risk. Hence, their value tends to fluctuate in response to changes in the Fed funds rate. ...
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For further details see:
New York Community Bancorp: I've Been Buying The Discounted Preferreds