Canadian stocks suffered across the board during the sharp market pull back on November 26. Fortunately, there was some bounce back to kick off this week. Today, I want to look at one regional bank stock that is still worth snatching up on the dip at the time of this writing. Let’s jump in.
Laurentian Bank (TSX:LB) is a Montreal-based regional bank. Shares of this bank stock have plunged 8.2% week-over-week as of close on November 29. The stock is still up 20% in the year-to-date period.
The bank is set to release its fourth quarter and full-year 2021 earnings before markets open on December 10. Recent reports indicate that Canadian banks are set to unveil a slew of dividend increases to cap off a very strong 2021. In Q3 2021, Laurentian Bank reported adjusted net income of $59.0 million – up from $47.1 million in the prior year. Meanwhile, adjusted diluted earnings per share rose to $1.25 over $1.02 in the third quarter of 2020.
In the year-to-date period, adjusted net income has increased 70% or 75% on a per-share basis to $163 million or $3.51 per share. Investors should be optimistic ahead of its next earnings release. Moreover, Quebec has achieved the highest economic growth among the provinces in 2021, bouncing back in a big way from a brutal 2020.
Shares of Laurentian Bank possess a very attractive price-to-earnings ratio of 8.9. It last had an RSI of 22, putting it well into technically oversold territory. Moreover, it offers a quarterly dividend of $0.40 per share. That represents a solid 4.2% yield.