Laser Focus World is an industry bedrock—first published in 1965 and still going strong. We publish original articles about cutting-edge advances in lasers, optics, photonics, sensors, and quantum technologies, as well as test and measurement, and the shift currently underway to usher in the photonic integrated circuits, optical interconnects, and copackaged electronics and photonics to deliver the speed and efficiency essential for data centers of the future.

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Editorial Advisory Board

  • Professor Andrea M. Armani, University of Southern California
  • Ruti Ben-Shlomi, Ph.D., LightSolver
  • James Butler, Ph.D., Hamamatsu
  • Natalie Fardian-Melamed, Ph.D., Columbia University
  • Justin Sigley, Ph.D., AmeriCOM
  • Professor Birgit Stiller, Max Planck Institute for the Science of Light, and Leibniz University of Hannover
  • Professor Stephen Sweeney, University of Glasgow
  • Mohan Wang, Ph.D., University of Oxford
  • Professor Xuchen Wang, Harbin Engineering University
  • Professor Stefan Witte, Delft University of Technology

2 Reasons to Watch SYBT and 1 to Stay Cautious

SYBT Cover Image

Stock Yards Bank has been treading water for the past six months, recording a small loss of 2.7% while holding steady at $73.23. The stock also fell short of the S&P 500’s 5.3% gain during that period.

Is now the time to buy SYBT? Or does the price properly account for its business quality and fundamentals? Find out in our full research report, it’s free.

Why Does SYBT Stock Spark Debate?

Founded in 1904 in Louisville and named after the city's historic livestock market district, Stock Yards Bancorp (NASDAQ: SYBT) operates a regional bank providing commercial banking, wealth management, and trust services across Kentucky, Indiana, and Ohio.

Two Positive Attributes:

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

While bank generate revenue from multiple sources, investors view net interest income as a cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of one-time fees.

Stock Yards Bank’s net interest income has grown at a 16.9% annualized rate over the last five years, much better than the broader bank industry and faster than its total revenue. Its growth was driven by both an increase in its outstanding loans and net interest margin, which represents how much a bank earns in relation to its outstanding loan book.

Stock Yards Bank Trailing 12-Month Net Interest Income

2. Outstanding Long-Term EPS Growth

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Stock Yards Bank’s EPS grew at an astounding 11.1% compounded annual growth rate over the last five years. This performance was better than most bank businesses.

Stock Yards Bank Trailing 12-Month EPS (Non-GAAP)

One Reason to be Careful:

Projected Net Interest Income Growth Is Slim

Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Stock Yards Bank’s net interest income to rise by 4.8%, close to its 5.3% annualized growth for the past two years.

Final Judgment

Stock Yards Bank’s positive characteristics outweigh the negatives. With its shares lagging the market recently, the stock trades at 2× forward P/B (or $73.23 per share). Is now a good time to initiate a position? See for yourself in our in-depth research report, it’s free.

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