1 Regional Bank Stock to Buy on the Dip

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.