Following better-than-expected first-quarter 2017 results, Citizens Financial Group, Inc. CFG continues to be on track to ramp up its profitability with fresh “Tapping Our Potential” program objectives for 2017.

Citizens Financial’s shares returned 9.0% over the last six months, outperforming the Financial - Savings and Loan industry’s decline of 1.8%.

Furthermore, Citizens Financial witnessed upward estimate revisions of 7.0% and 3.8% for 2017 and 2018, respectively, in the last 30 days. As a result, the company sports a Zacks Rank #1 (Strong Buy).

Why the Stock is Worth Buying

Earnings Per Share Strength: Over the past three to five years, Citizens Financial witnessed earnings per share (EPS) growth of 28.14% compared with 6.81% for the industry. Notably, the company also recorded an average positive earnings surprise of 9.12%, over the trailing four quarters.

Also, the company’s long-term (three to five years) estimated EPS growth rate of 11.9% promises rewards for investors over the long run.

Efficient Capital Deployment: Apart from an ongoing share repurchase program, the company displayed its strong balance sheet position by increasing the quarterly common stock dividend by 17% for the first quarter.

Strong Leverage: Citizens Financial’s debt/equity ratio is 0.60 compared with the industry average of 0.67. The relatively strong financial health of the company will help it perform better than its peers under a dynamic business environment.

Undervalued: Citizens Financial has a P/B ratio of 0.90x compared with the broader industry’s average of 1.30x. Based on this ratio, the stock seems undervalued. Also, the company has a Value Score of ‘B’, which makes it a good pick for value investors.

Some of the other financial stocks worth considering include M&T Bank Corporation MTB, Northern Trust Corporation NTRS and The PNC Financial Services Group, Inc. PNC.

Northern Trust and PNC Financial carry a Zacks Rank #2 (Buy), whereas M&T Bank sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.   

M&T Bank witnessed an upward earnings estimate revision of 5.3%, over the past 60 days. Also, its share price gained 35.4% over the last one year.

Northern Trust's earnings estimates moved upward by 2.4% over the past 60 days, for the current year. Its share price increased 19.9%, over the last one year.

PNC Financial’s current-year earnings estimates were revised 3.0% upward, over the past 60 days. Over the last one year, its share price surged 35.2%.  

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