Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

High Quality And Ample Dry Powder Make Prosperity Bancshares One To Watch

While Texas-based Prosperity Bancshares (NYSE:PB) has gone along with the year-to-date mid-cap bank stock rally, the overall performance over the past year hasn't been all that special. A lot of that has to do with the valuation; investors have generally been happy to assign robust multiples to this bank due to its uncommon growth and quality, but those same multiples seem to have left these shares a relative also-ran in performance.

And so it is today - while Prosperity is a very well-run bank and has substantial long-term growth potential (not to mention ample dry powder on the balance sheet), the valuation today is not what I'd call "can't miss." With mid-cap banks in general looking a little...

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