Since March 2025, Fulton Financial has been in a holding pattern, posting a small return of 2.3% while floating around $18.80. The stock also fell short of the S&P 500’s 15.7% gain during that period.
Is there a buying opportunity in Fulton Financial, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is Fulton Financial Not Exciting?
We don't have much confidence in Fulton Financial. Here are three reasons we avoid FULT and a stock we'd rather own.
1. 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 Fulton Financial’s net interest income to rise by 1.9%, a deceleration versus its 8.2% annualized growth for the past two years. This projection is below its 8.2% annualized growth rate for the past two years.
2. Efficiency Ratio Expected to Falter
Topline growth carries importance, but the overall profitability behind this expansion determines true value creation. For banks, the efficiency ratio captures this relationship by measuring non-interest expenses, including salaries, facilities, technology, and marketing, against total revenue.
Markets emphasize efficiency ratio trends over static measurements, recognizing that revenue compositions drive different expense bases. Lower efficiency ratios signal superior performance by indicating that banks are controlling costs effectively relative to their income.
For the next 12 months, Wall Street expects Fulton Financial to become less profitable as it anticipates an efficiency ratio of 60.6% compared to 57.8% over the past year.
3. TBVPS Growth Demonstrates Strong Asset Foundation
Tangible book value per share (TBVPS) serves as a key indicator of a bank’s financial strength, representing the hard assets available to shareholders after removing intangible assets that could evaporate during financial distress.
Although Fulton Financial’s TBVPS increased by a meager 4.3% annually over the last five years, the good news is that its growth has recently accelerated as TBVPS grew at a decent 10.1% annual clip over the past two years (from $11.36 to $13.78 per share).
Final Judgment
Fulton Financial isn’t a terrible business, but it doesn’t pass our bar. With its shares lagging the market recently, the stock trades at 1× forward P/B (or $18.80 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're fairly confident there are better stocks to buy right now. Let us point you toward our favorite semiconductor picks and shovels play.
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