HIFS - This Small Bank Stock Is a Hidden Gem
Most retail investors don't follow the banking sector too closely, aside from some of the main money-center banks like Wells Fargo and Bank of America . That's OK, of course. The sector doesn't exactly offer the same thrill as others and has taken many years to recover from the Great Recession in 2008. But there are many opportunities, considering there are more than 4,800 banks in the U.S., about 600 of which are publicly traded. A hidden gem within the banking industry is the Hingham Institution for Savings (NASDAQ: HIFS) , a small $3.4 billion asset bank headquartered in Hingham, Massachusetts. You may have never heard of Hingham, but the stock has generated more than a 6,000% return for investors since going public in 1988.
In the U.S., banking is a very competitive business. Some people even liken the sector to a commodity business because certain products can be so similar from bank to bank, and most bank stocks can move together through the cycle.
To stand out as a bank, many have tried to offer unique services or cater to niche industries. You'll notice that many small banks have embarked on banking-as-a-service strategies in which they essentially provide the financial plumbing so non-banks can offer their customers financial services.
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This Small Bank Stock Is a Hidden Gem