On Aug 28, Zacks Investment Research upgraded
Grupo Financiero Galicia S.A.

(
GGAL

) to a Zacks Rank #1 (Strong Buy).

Why the Upgrade?

Grupo Financiero has been witnessing rising earnings estimates
following the announcement of robust second-quarter 2013 results.
Moreover, this Argentinean bank has delivered an average beat of
5.6% in the past four quarters.

Grupo Financiero reported second-quarter 2013 results on Aug 8.
Earnings per share of 56 cents surpassed the Zacks Consensus
Estimate by 4 cents. Results benefited from top-line growth and a
rise in provision for credit losses, partially offset by higher
administrative expenses.

Results were also boosted by the income derived from Grupo
Financiero’s stake in Banco de Galicia y Buenos Aires S.A. and in
Sudamericana Holding S.A. and from the deferred tax adjustment of
15.1 million pesos ($2.9 million).

Financial income rose 7.4% sequentially to $2.9 billion pesos
($0.6 billion). Moreover, income from services jumped 14.3% to
$1.0 billion pesos ($0.2 billion). On the flip side,
administrative expenses rose 9.2% from the prior quarter to $1.8
billion pesos. ($0.3 billion). However, provision for loan losses
dropped 1.4% to 434.7 million pesos ($82.8 million).

Additionally, following the earnings release, the Zacks Consensus
Estimate for 2013 increased 3.4% to $2.11 per share over the last
7 days. Similarly, for 2014, the Zacks Consensus Estimate
advanced 7.4% to $2.04 per share over the same time period.

Positive earnings surprises and favorable estimate revisions
stimulated the rank upgrade.

Other Stocks to Consider

While we prefer Grupo Financiero, other stocks carrying a Zacks
Rank #1 include
Glacier Bancorp Inc.

(
GBCI

),
Prosperity Bancshares Inc.

(
PB

) and
Sumitomo Mitsui Financial Group Inc.

(
SMFG

).

GLACIER BANCORP (GBCI): Free Stock Analysis
Report

GRUPO GALIC ADR (GGAL): Free Stock Analysis
Report

PROSPERITY BCSH (PB): Free Stock Analysis
Report

SUMITOMO-MITSUI (SMFG): Free Stock Analysis
Report

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