2024-02-15 04:58:18 ET
Summary
- Enterprise Bancorp has been unjustly punished in the sell-off of regional banks and is trading at a nearly 10-year low valuation.
- The bank has a resilient business model and has remained profitable for 137 consecutive quarters.
- The decrease in interest rates and the market shifting its focus on the bank's fundamentals are likely to benefit EBTC in the future.
About three years ago, I recommended purchasing Enterprise Bancorp ( EBTC ) for its high-quality business model and its cheap valuation. Since then, I have maintained my bullish view of the stock. In my most recent article , four months ago, I reiterated my bullish thesis based on the rock-solid business model of the bank and its 10-year low valuation level. In the two months that followed that article, the stock rallied 25%, an impressive performance for such a short period. The rally was fueled primarily by the decrease in inflation and the resultant expectations that the Fed would drastically reduce interest rates over the next three years....
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Enterprise Bancorp: A Great Stock For Lower Interest Rates