Profit Fan

Horizon Bancorp Has The Materials Needed To Grow But Earnings Will Need To Overcome Significant Headwinds

Looking back at my first article on Horizon Bancorp (NASDAQ:HBNC), I am reminded of how heavily I used to rely on price to book value metrics for valuing the regional banks that I cover. I have to confess, I like many, was temporarily blinded by the skyrocketing bank shares, as they continued to appreciate from their recessionary lows. They may have been moving up because their low P/BV ratios indicated that they were undervalued, but that move lost some significant steam because many of these banks were not backed by the earnings needed to take shares to the next level.

Horizon continues to outperform many of its peers, but shares have flat-lined and I have a hard time...

Join Seeking Alpha PRO to read this archived article and 11,574 other archived articles
IDEA GENERATORXExclusive access to 10 PRO ideas every day
INVESTING IDEAS LIBRARYXExclusive access to PRO library of more than 15,000 ideas
SECTOR EXPERT NETWORKXExclusive access to all sector experts for direct consultation
PERFORMANCE TRACKINGXTrack performance of all PRO stock ideas
PROFESSIONAL TOOLSXProfessional Idea Filters to zero-in based on industry, market cap and more
"In just the first month of using PRO, I used it to generate two ideas which were actionable for me. As a result of these two positions, I have earned more than 20 times the annual subscription costs for PRO."Michael Yagemann, Greenbridge Capital
"I am pleasantly surprised with the scope of small and mid-cap coverage PRO offers. You can't find that any where else."Patrick Rice, Mainstay Capital Management
You may cancel at any time for any reason, and receive a prompt refund for membership on months paid and not used (max. 6 months). Details