December 14, 2023
Top 10 Stock Associated Banc-Corp Buy Recommendation
How to read the ranks
For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".
Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".
Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.
Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.
(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).
(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.
Snapshot: Associated Banc-Corp – Top 10 Stock in Dow Jones U.S. Regional Banks Index
Associated Banc-Corp is listed as a top 10 stock on December 14, 2023 in the market index D.J. US Banks because of its high performance in at least one of the Obermatt investment strategies. While half the consolidated Obermatt Ranks are above-average, investor sentiment is below average and thus a signal for caution. Based on the Obermatt 360° View of 60 (high 60% performer), Obermatt assesses an overall buy recommendation for Associated Banc-Corp on December 14, 2023.
Snapshot: Obermatt Ranks
| Country | USA |
| Industry | Regional Banks |
| Index | Dividends USA, D.J. US Banks, S&P MIDCAP |
| Size class | XX-Large |
When Obermatt identifies the Top 10 stocks in a market, it’s based on a certain investment strategy. The best performing stocks usually aren’t the ones that everyone is talking about (those are often "over-priced" and have low Value ranks).
For each investment strategy, we provide you with more detailed analysis and our recommendation. You see the ranks of the top 10 stocks ranked by that particular investment strategy (360° View, Sentiment, Value, Growth, Safety and Combined Financial Performance).
360° View: Obermatt 360° View Associated Banc-Corp Buy
| 360 METRICS | December 14, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 94 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 73 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 11 |
|
||||||
| SENTIMENT | ||||||||
| SENTIMENT | 42 |
|
||||||
| 360° VIEW | ||||||||
| 360° VIEW | 60 |
|
||||||
ANALYSIS: With an Obermatt 360° View of 60 (better than 60% compared with alternatives), overall professional sentiment and financial characteristics for the stock Associated Banc-Corp are above average. The 360° View is based on consolidating four consolidated indicators, with half of the metrics below and half above average for Associated Banc-Corp. The consolidated Value Rank has an attractive rank of 94, which means that the share price of Associated Banc-Corp is on the lower side compared with the typical size in indicators such as revenues, profits, and invested capital. This means the stock price is lower than for 94% of alternative stocks in the same industry. The consolidated Growth Rank has a good rank of 73, which means that the company experiences above-average growth momentum when looking at financial metrics such as revenue, profit, and invested capital growth as well as stock returns. But the professional market sentiment is below average compared with other stock investment alternatives with a Sentiment Rank of 42. Professional investors are more confident in 58% other stocks. Worryingly, the company has risky financing, with a Safety rank of 11. This means 89% of comparable companies have a safer financing structure than Associated Banc-Corp. ...read more
RECOMMENDATION: With a consolidated 360° View of 60, Associated Banc-Corp is better positioned than 60% of all alternative stock investment opportunities based on the Obermatt Method. Even though half of the consolidated Obermatt Ranks are above-average, namely the Value Rank at 94 and the Growth Rank above-average at 73, the picture is still mixed. The professional investor community is skeptical, with the Sentiment Rank below-average at 42. In addition, the company financing structure is on the riskier side (Safety Rank of 11). Since the company is good value and the share price low, it should attract investors, yet professionals are skeptical. One may be tempted by above-average growth, but that could also change quickly, as past performance is not a good indicator of future performance. Since the financing structure is on the risky side, investors should be careful with this decision and conduct further research if they are serious about investing in this company. ...read more
Sentiment Strategy: Professional Market Sentiment for Associated Banc-Corp only reserved
ANALYSIS: With an Obermatt Sentiment Rank of 42 (better than 42% compared with alternatives), overall professional sentiment and engagement for the stock Associated Banc-Corp is below industry average. The Sentiment Rank is based on consolidating four sentiment indicators, with half of the indicators below and above average for Associated Banc-Corp. Analyst Opinions are at a rank of 43 (worse than 57% of alternative investments), which means that currently, stock research analysts tend to warn against investing in the stock of the company. But they are changing their opinions! Analyst Opinions Change has a rank of 62 which means that stock research experts are changing their opinions for the better. In other words, they are getting more optimistic of stock investments in Associated Banc-Corp. Market Pulse is also positive with a rank of 51, which means that the current professional news and professional social networks are positive in their discussions about this company (more positive news than for 51% of competitors). Only professional investors tend to be absent with a Professional Investors rank of 37, which means that professional investors hold less stock in this company than in 63% of alternative investment opportunities. Pros tend to invest in other companies. But that could also be due to the size of the company. Professional investors tend to invest in XL and XXL companies. If the company is smaller than that, that fact alone may explain why there are fewer pros present. ...read more
RECOMMENDATION: With a consolidated Sentiment Rank of 42 (less encouraging than 58% compared with investment alternatives), Associated Banc-Corp has a reputation among professional investors that is below that of its competitors. Since analysts are getting more optimistic and the professional communication channels are positive, it may be an indication of a company that has the difficult times behind it or the stocks’ value is improving. For medium to smaller companies, the positive sentiment indicators outshine the negative. ...read more
Value Strategy: Associated Banc-Corp Stock Price Value at the top
ANALYSIS: With an Obermatt Value Rank of 94 (better than 94% compared with alternatives) for 2023, Associated Banc-Corp shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for Associated Banc-Corp. Price-to-Sales is 76 which means that the stock price compared with what market professionals expect for future sales is lower than for 76% of comparable companies, indicating a good value for Associated Banc-Corp's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 74% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 83. Compared with other companies in the same industry, dividend yields of Associated Banc-Corp are expected to be higher than for 77% of all competitors (a Dividend Yield rank of 77). ...read more
RECOMMENDATION: The overall picture with a consolidated Value Rank of 94, is a buy recommendation based on Associated Banc-Corp's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in Associated Banc-Corp based on its detailed value metrics.
Growth Strategy: Associated Banc-Corp Growth Momentum good
| GROWTH METRICS | December 14, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| REVENUE GROWTH | ||||||||
| REVENUE GROWTH | 81 |
|
||||||
| PROFIT GROWTH | ||||||||
| PROFIT GROWTH | 39 |
|
||||||
| CAPITAL GROWTH | ||||||||
| CAPITAL GROWTH | 61 |
|
||||||
| STOCK RETURNS | ||||||||
| STOCK RETURNS | 51 |
|
||||||
| CONSOLIDATED RANK: GROWTH | ||||||||
| CONSOLIDATED RANK: GROWTH | 73 |
|
||||||
ANALYSIS: With an Obermatt Growth Rank of 73 (better than 73% compared with alternatives), Associated Banc-Corp shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Associated Banc-Corp. Sales Growth has a rank of 81 which means that currently, professionals expect the company to grow more than 81% of its competitors. Capital Growth is also above 39% of competitors with a rank of 61, and Stock Returns with the rank of 51 is also an outperformance. Only Profit Growth is low with a rank of 39 which means that currently, professionals expect the company to grow its profits less than 61% of its competitors. ...read more
RECOMMENDATION: The overall picture with a consolidated Growth Rank of 73, is a buy recommendation for growth and momentum investors. All three operating growth indicators, namely revenue, profit, and capital growth, are showing improvements. This is a good indication of a company with a positive future. That might, at the same time, be the simple reason why profit growth is low. A growing company needs money and thus can't yet show high profit growth. Look out for signs in corporate communication about extra growth efforts costing time and money. If that is the case, Associated Banc-Corp is a good growth stock. ...read more
Safety Strategy: Associated Banc-Corp Debt Financing Safety risky
| SAFETY METRICS | December 14, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| LEVERAGE | ||||||||
| LEVERAGE | 28 |
|
||||||
| REFINANCING | ||||||||
| REFINANCING | 38 |
|
||||||
| LIQUIDITY | ||||||||
| LIQUIDITY | 25 |
|
||||||
| CONSOLIDATED RANK: SAFETY | ||||||||
| CONSOLIDATED RANK: SAFETY | 11 |
|
||||||
ANALYSIS: With an Obermatt Safety Rank of 11 (better than 11% compared with alternatives), the company Associated Banc-Corp has much riskier financing practices than comparable other companies, which means that their overall debt burden is significantly above the industry average. This doesn't mean that the business of Associated Banc-Corp is also risky, it only means that the company is on the riskier side in respect to bankruptcy in case things turn sour, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with all three metrics below average for Associated Banc-Corp. Liquidity is at 25, meaning that the company generates less profit to service its debt than 75% of its competitors. This indicates that the company is on the riskier side when it comes to debt service. Even worse, Leverage is at a rank of 28, meaning the company has an above-average debt-to-equity ratio. It has more debt than 72% of its competitors. Finally, Refinancing is at a rank of 38 which means that the portion of the debt about to be refinanced is above average. It has more debt in the refinancing stage than 62% of its competitors. ...read more
RECOMMENDATION: With a consolidated Safety Rank of 11 (worse than 89% compared with alternatives), Associated Banc-Corp has a financing structure that is significantly riskier than that of its competitors. This combination is rather dangerous in most situations. Only very promising companies with bright future outlooks and stellar reputations can operate with such risky financing.
Combined financial peformance: Associated Banc-Corp Above-Average Financial Performance
| COMBINED PERFORMANCE | December 14, 2023 | |||||||
|---|---|---|---|---|---|---|---|---|
| VALUE | ||||||||
| VALUE | 94 |
|
||||||
| GROWTH | ||||||||
| GROWTH | 73 |
|
||||||
| SAFETY | ||||||||
| SAFETY | 25 |
|
||||||
| COMBINED | ||||||||
| COMBINED | 63 |
|
||||||
ANALYSIS: With an Obermatt Combined Rank of 63 (better than 63% compared with investment alternatives), Associated Banc-Corp (Regional Banks, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Associated Banc-Corp are a good value (attractively priced) with a consolidated Value Rank of 94 (better than 94% of alternatives), show above-average growth (Growth Rank of 73) but are riskily financed (Safety Rank of 11), which means above-average debt burdens. ...read more
RECOMMENDATION: A Combined Rank of 63, is a buy recommendation based on Associated Banc-Corp's financial characteristics. As the company Associated Banc-Corp's key financial metrics exhibit excellent performance in two areas, such as good value (Obermatt Value Rank of 94) and above-average growth (Obermatt Growth Rank of 73), it could be argued that the risk-taking in financing (Obermatt Safety Rank of only 11) indicates that the company is optimistic about the future and sees debt as an opportunity to boost returns. More debt means more shareholder returns if everything goes well. However, higher debt burdens are risky when interest rates rise or the business deteriorates in a crisis. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. ...read more
Obermatt Portfolio Performance
We’re so convinced about our research, that we buy our stock tips.
See the performance of the Obermatt portfolio.