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AMZN   101.90 (-0.27%)
TSLA   195.95 (+0.61%)
NVDA   221.13 (+4.86%)
NIO   10.88 (-0.46%)
BABA   105.53 (+0.08%)
AMD   85.72 (+2.44%)
T   19.31 (-1.38%)
F   13.41 (+2.05%)
MU   61.96 (+3.30%)
CGC   2.81 (-4.75%)
GE   81.96 (-0.47%)
DIS   111.78 (+1.74%)
AMC   6.11 (-10.15%)
PFE   43.62 (-0.32%)
PYPL   83.22 (+1.08%)
NFLX   361.88 (+0.11%)
QQQ   309.48 (+1.94%)
AAPL   154.26 (+1.67%)
MSFT   267.45 (+4.16%)
META   191.55 (+2.95%)
GOOGL   107.44 (+4.41%)
AMZN   101.90 (-0.27%)
TSLA   195.95 (+0.61%)
NVDA   221.13 (+4.86%)
NIO   10.88 (-0.46%)
BABA   105.53 (+0.08%)
AMD   85.72 (+2.44%)
T   19.31 (-1.38%)
F   13.41 (+2.05%)
MU   61.96 (+3.30%)
CGC   2.81 (-4.75%)
GE   81.96 (-0.47%)
DIS   111.78 (+1.74%)
AMC   6.11 (-10.15%)
PFE   43.62 (-0.32%)
PYPL   83.22 (+1.08%)
NFLX   361.88 (+0.11%)
QQQ   309.48 (+1.94%)
AAPL   154.26 (+1.67%)
MSFT   267.45 (+4.16%)
META   191.55 (+2.95%)
GOOGL   107.44 (+4.41%)
AMZN   101.90 (-0.27%)
TSLA   195.95 (+0.61%)
NVDA   221.13 (+4.86%)
NIO   10.88 (-0.46%)
BABA   105.53 (+0.08%)
AMD   85.72 (+2.44%)
T   19.31 (-1.38%)
F   13.41 (+2.05%)
MU   61.96 (+3.30%)
CGC   2.81 (-4.75%)
GE   81.96 (-0.47%)
DIS   111.78 (+1.74%)
AMC   6.11 (-10.15%)
PFE   43.62 (-0.32%)
PYPL   83.22 (+1.08%)
NFLX   361.88 (+0.11%)

Should The Bancorp Make Your Small-Cap Watchlist for 2023?

Key Points

  • The Bancorp (TBBK) is a small-cap regional bank that may be under the radar of investors. 
  • The company has a wide-ranging portfolio of financial products and services including being the number one issuer of prepaid cards in the United States. 
  • The bank is beating revenue and earnings numbers on a year-over-year basis. 
  • The company’s balance sheet and history of low credit losses are two reasons why this small regional bank should be on your 2023 watchlist.  
  • 5 stocks we like better than Bancorp
Should The Bancorp Make Your Small-Cap Watchlist for 2023?

For many investors, investing during a bear market means staying away from small-cap stocks. That could be a mistake as these stocks are the ones that often lead the way when the market reverses. And...spoiler alert...the market always does turnaround. 

Nevertheless, quality still matters, and it matters even more when investing in companies with a small market cap. With that in mind, The Bancorp (NASDAQ: TBBK) is a small-cap regional bank that appears to be well-positioned for whatever happens in 2023. 

This article will introduce you to The Bancorp and explain why it may deserve a place on your 2023 watchlist.  

An Emerging Name Among Regional Banks 

The Bancorp may not be a household name when it comes to regional banks, but that could be changing. The company operates as the financial holding company for The Bancorp Bank. That bank provides a portfolio of banking products and services made up of fintech solutions, institutional banking, commercial lending, and real estate bridge lending.  

Although you may not have a credit or debit card with The Bancorp name, chances are that it may underwrite one of the many private label companies you’ve heard about and may get offers from. The company is the number one issuer of prepaid cards in the United States. 

In August 2022, the Bank Director 2022 Ranking Banking study, ranked The Bancorp Bank as the number one bank among those with assets between $5 billion to $50 billion. The bank’s ranking was measured by its return on equity and assets, asset quality, capital adequacy and total shareholder return. 


A Profitable Bank That is Showing Growth 

In its most recent quarter, The Bancorp missed analyst expectations for revenue and earnings. But some context is important. The company has delivered revenue and earnings in the first three quarters that are higher on a year-over-year (YOY) basis. For the first three quarters, the company is ahead of 2021’s revenue pace by 5% and is ahead in terms of earnings per share (EPS) by 10%. 

TBBK Stock is One for the Watchlist 

As we get into the home stretch of 2022, it's a good time to take a critical look at your portfolio. Weeding out underperforming stocks is often the easy part. Replacing them is a different matter altogether. 

The consensus in the financial media is that there will be a recession of unknown length and severity in 2023. Of course, there are also those that believe we’re already in one. Either way, investors are likely to be dealing with higher interest rates in 2023. This makes financial stocks attractive.  

But the risk of financial stocks comes from the lending side of the business. That’s another reason to look at The Bancorp. The company has a history of having a loan portfolio with low credit losses 

TBBK stock is not heavily covered by analysts. However, the two analysts that are tracked by MarketBeat give the stock a buy rating with a price target that gives investors the potential for a 26% upside. That kind of gain, along with a P/E ratio of just around 13x earnings and a forward P/E ratio of around 12x makes up for the lack of a dividend and makes The Bancorp one to have on your 2023 watchlist. 

Should you invest $1,000 in Bancorp right now?

Before you consider Bancorp, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Bancorp wasn't on the list.

While Bancorp currently has a "Buy" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

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MarketBeat's analysts have just released their top five short plays for February 2023. Learn which stocks have the most short interest and how to trade them. Click the link below to see which companies made the list.

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Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
Bancorp (TBBK)
1.7988 of 5 stars
$35.75+0.1%N/A15.68Buy$35.00
Compare These Stocks  Add These Stocks to My Watchlist 

Chris Markoch

About Chris Markoch

Contributing Author: Retirement, Individual Investing

Chris Markoch is a freelance financial copywriter with over five years of experience covering various aspects of the financial markets. You may find his writing a little different than other stock articles you’ve read. And that’s OK with him. Chris doesn’t have a traditional finance background. What he does bring to the table is a strong business and marketing background having worked for agencies that serviced Fortune 500 companies. With that in mind, he isn’t overly impressed with what companies say, and more focused on what they do. And because buyer behavior dictates so much of what happens with a stock, Chris always keeps the end consumer close in mind. Chris has been writing for MarketBeat since 2018.

Contact Chris Markoch via email at CTMarkoch@msn.com.

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