This particular bank has such growth in mortgage loan activity. They have seen increases in mortgage activity, and welcome over 3% yield spreads, even with these low rates currently in place. As rates rise, variable rate loans issued would be advantageous to the loan holder by demanding higher rates versus an artificially deflated interest rate. With over 70% of its loan portfolio in these assets, rest assured that TrustCo Bank Corp NY (NASDAQ:TRST) will capitalize on two fronts: real estate and rising interest rates.
TrustCo Bank Corp NY (NASDAQ:TRST)’s stock has taken quite a leap in the last few trading days, breaking out of a holding pattern its been in to accurately reflect the second quarter EPS surprise the company announced on July 22, 2013. Their $0.201 EPS beat analyst estimates by $0.01 and offered optimistic guidance for the rest of the year.
This integrated circuits manufacturer has a global footprint and is estimated to bring in over $2.5 billion in revenue for 2013, which would be a 50% increase from 2009. Analysts expect this company to continue to expand at a rate of 7%-9% year-over-year, which means your investment should grow along with it. The average analyst has this stock pegged at $33 per share, and if we can add it the rising market premium on interest rate hikes, this stock should trade above $35 by year’s end. At the current price of around $27 per share, there is much more upside than downside here.
If you hadn’t already have seen Nokia Corporation (ADR) (NYSE:NOK)’s surge against Apple and Samsung, you probably have been living under a rock. The chief of Nokia Corporation (ADR) (NYSE:NOK), Mr. Stephen Elop, has launched a new phone advertised to directly assault the iconic iPhone and the neuve riche Galaxy.
Nokia Corporation (ADR) (NYSE:NOK) also has climbed aboard the redesign of the camera smartphone to meet consumer’s demand for them vis-à-vis digital cameras. According to DS Rawat, a honcho with India’s technology sector, there’s a 92% probability a consumer will search for a better camera in a smartphone rather than a forking over money for a digital camera.
The convergence of technology will fare well for this once-hot, not-hot, now-warm cellular device maker. With BlackBerry still reeling, Apple phones slowing, and Samsung reaching a plateau, my bet is that Nokia Corporation (ADR) (NYSE:NOK) reemerges as a leader in the cellular industry in a big way. Its namesake already has taken a cavalier stance against its rivals by using the Windows-based phones as a launching pad through Nokia Corporation (ADR) (NYSE:NOK)’s hardware contributions. As a matter of fact, Nokia has tripled year-over-year growth and accounted for approximately 79% of all Windows smartphone sales.
Thankfully, Nokia Corporation (ADR) (NYSE:NOK) presents an ample buying opportunity in spite of the major traction the business has. The stock is trading 25% off of its 52-week high and is building a solid trading base at $3.00. Investors in general have not given Nokia its just due, and point to the negatives on the company’s financial statements. This current quarter will surprise many, in my opinion. As big funds and tech-heavy hedge funds continue to take more “risk on” trades, Nokia should be on the A-list of stocks to buy in those funds. My advice: get in before they do.
The article Three Stocks On Which to Ride the Market’s Momentum originally appeared on Fool.com and is written by Michael Mandala.
Michael Mandala has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Michael is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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