2024-07-15 08:30:00 ET
Summary
- Bank OZK shares have underperformed the market, but Q1 results showed strong earnings growth and loan expansion.
- Q2 focus will be on NII and credit quality, particularly regarding a significant loan for a life science building in San Diego.
- Despite concerns over real estate exposure, Bank OZK remains attractively valued with potential for positive credit quality news given its dividend increase.
Shares of Bank OZK ( OZK ) have been a disappointing performer over the past year, rising less than 3% even as the broader market has rallied substantially. While Bank OZK handled the funding turmoil of early 2023 very well, proving to be an effective gatherer of deposits, concerns over commercial real estate have recently weighed on shares. Since recommending shares as a strong buy in April , OZK has fallen by about 5% while the S&P 500 has risen by 10%, underperforming due to these concerns. Bank OZK is set to report results after the market close on July 17 th , and I expect this report to be particularly meaningful, making now an opportune time to revisit the stock and preview results....
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Bank OZK Q2 Earnings Preview: CRE Losses Are The Critical Item