City Holding is flagged as risky due to three concerns, and an alternative stock is suggested. The company's net interest income grew at a 9.6% annualized rate over five years, slightly below the broader banking industry. Analysts project net interest income to rise by only 2.4% over the next 12 months, a deceleration from its 4.5% annualized growth in the past two years. Earnings per share grew at a 6.9% compounded annual rate over two years, which is considered unimpressive. The stock trades at 2.2 times forward price-to-book, or $132.58 per share, and a dominant aerospace business is recommended as a better buy.
City Holding CompanyAnalysts flag three concerns: slowing net interest income growth, unimpressive EPS growth, and high valuation; an alternative stock is suggested.