3 Reasons NIC Has Explosive Upside Potential

Stock Story

Nicolet Bankshares has followed the market’s trajectory closely, rising in tandem with the S&P 500 over the past six months. The stock has climbed by 7.7% to $141.55 per share while the index has gained 9.5%.

Is now a good time to buy NIC? Find out in our full research report, it’s free.

Why Are We Positive On NIC?

Starting as Green Bay Financial Corporation in 2000 before rebranding in 2002, Nicolet Bankshares is a regional bank holding company that provides commercial, agricultural, and consumer banking services primarily in Wisconsin, Michigan, and Minnesota.

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

While bank generate revenue from multiple sources, investors view net interest income as a cornerstone - its predictable, recurring characteristics stand in sharp contrast to the volatility of one-time fees.

Nicolet Bankshares’s net interest income has grown at a 18.8% annualized rate over the last five years, much better than the broader banking industry and faster than its total revenue.

Nicolet Bankshares Trailing 12-Month Net Interest Income

2. Projected Net Interest Income Growth Is Remarkable

Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite, though some deceleration is natural as businesses become larger.

Over the next 12 months, sell-side analysts expect Nicolet Bankshares’s net interest income to rise by 60.4%, an improvement versus its 10.1% annualized growth for the past two years.

3. Increasing Net Interest Margin Juices Financials

Net interest margin (NIM) represents how much a bank earns in relation to its outstanding loans. It's one of the most important metrics to track because it shows how a bank's loans are performing and whether it has the ability to command higher premiums for its services.

Over the past two years, Nicolet Bankshares’s net interest margin averaged 3.6%, climbing by 65 basis points (100 basis points = 1 percentage point) over that period.

This expansion was a tailwind for its net interest income, and while prevailing interest rates matter the most for industry net interest margins, banks that consistently increase this figure generally boast higher-earning loan books (all else equal such as the risk of those loans) or provide differentiated services that give them the ability to charge higher rates (pricing power).

Nicolet Bankshares Trailing 12-Month Net Interest Margin

Final Judgment

These are just a few reasons Nicolet Bankshares is a rock-solid business worth owning, but at $141.55 per share (or 1.7× forward P/B), is now the right time to buy the stock? See for yourself in our full research report, it’s free.

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Australia stocks higher at close of trade; S&P/ASX 200 up 0.48%

Investing.com

Advanced Micro Devices

Investing.com – Australia stocks were higher after the close on Friday, as gains in the IT, A-REITs and Consumer Staples sectors led shares higher.

At the close in Sydney, the S&P/ASX 200 added 0.48% to hit a new 1-month high.

The best performers of the session on the S&P/ASX 200 were DroneShield Ltd (ASX:DRO), which rose 7.84% or 0.32 points to trade at 4.40 at the close. Meanwhile, Capstone Copper Corp DRC (ASX:CSC) added 7.26% or 1.06 points to end at 15.66 and Treasury Wine Estates Ltd (ASX:TWE) was up 6.67% or 0.34 points to 5.44 in late trade.

The worst performers of the session were Pls Group Ltd (ASX:PLS), which fell 3.42% or 0.17 points to trade at 4.66 at the close. IGO Ltd (ASX:IGO) declined 3.28% or 0.30 points to end at 8.86 and Nickel Mines Ltd (ASX:NIC) was down 3.21% or 0.03 points to 0.90.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 664 to 497 and 398 ended unchanged.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 1.44% to 10.20.

Gold Futures for February delivery was down 0.41% or 18.81 to $4,604.89 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 0.27% or 0.16 to hit $59.03 a barrel, while the March Brent oil contract fell 0.30% or 0.19 to trade at $63.57 a barrel.

AUD/USD was unchanged 0.10% to 0.67, while AUD/JPY fell 0.15% to 106.10.

The US Dollar Index Futures was down 0.01% at 99.11.

Risk Warnings and Disclaimers

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Australia stocks higher at close of trade; S&P/ASX 200 up 0.14%

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Investing.com – Australia stocks were higher after the close on Wednesday, as gains in the Energy, Resources and Gold sectors led shares higher.

At the close in Sydney, the S&P/ASX 200 gained 0.14% to hit a new 1-month high.

The best performers of the session on the S&P/ASX 200 were Stanmore Coal (ASX:SMR), which rose 11.81% or 0.32 points to trade at 3.03 at the close. Meanwhile, IperionX Limited (ASX:IPX) added 8.38% or 0.56 points to end at 7.24 and Neuren Pharmaceuticals Ltd (ASX:NEU) was up 6.53% or 1.26 points to 20.56 in late trade.

The worst performers of the session were Block Inc (ASX:XYZ), which fell 3.17% or 3.31 points to trade at 100.98 at the close. Reliance Worldwide Corporation Ltd (ASX:RWC) declined 2.52% or 0.11 points to end at 4.06 and Nickel Mines Ltd (ASX:NIC) was down 2.13% or 0.02 points to 0.92.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 639 to 543 and 387 ended unchanged.

Shares in Stanmore Coal (ASX:SMR) rose to 52-week highs; rising 11.81% or 0.32 to 3.03.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was unchanged 0.02% to 10.21.

Gold Futures for February delivery was up 0.92% or 42.20 to $4,641.30 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 0.36% or 0.22 to hit $60.93 a barrel, while the March Brent oil contract fell 0.27% or 0.18 to trade at $65.29 a barrel.

AUD/USD was unchanged 0.13% to 0.67, while AUD/JPY rose 0.32% to 106.67.

The US Dollar Index Futures was up 0.04% at 98.95.

Risk Warnings and Disclaimers

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Australia stocks lower at close of trade; S&P/ASX 200 down 0.03%

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James Hardie Industries

Investing.com – Australia stocks were lower after the close on Friday, as losses in the IT, A-REITs and Metals & Mining sectors led shares lower.

At the close in Sydney, the S&P/ASX 200 declined 0.03%.

The best performers of the session on the S&P/ASX 200 were Codan Ltd (ASX:CDA), which rose 16.83% or 5.31 points to trade at 36.87 at the close. Meanwhile, AP Eagers Ltd (ASX:APE) added 5.07% or 1.29 points to end at 26.72 and James Hardie Industries PLC (ASX:JHX) was up 4.64% or 1.43 points to 32.27 in late trade.

The worst performers of the session were Rio Tinto Ltd (ASX:RIO), which fell 6.20% or 9.46 points to trade at 143.17 at the close. Nickel Mines Ltd (ASX:NIC) declined 4.17% or 0.04 points to end at 0.92 and Guzman Y Gomez Ltd (ASX:GYG) was down 3.30% or 0.71 points to 20.79.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 574 to 568 and 385 ended unchanged.

Shares in Codan Ltd (ASX:CDA) rose to all time highs; gaining 16.83% or 5.31 to 36.87. Shares in Guzman Y Gomez Ltd (ASX:GYG) fell to all time lows; falling 3.30% or 0.71 to 20.79.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 1.63% to 10.03.

Gold Futures for February delivery was up 0.35% or 15.69 to $4,476.39 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.69% or 0.40 to hit $58.16 a barrel, while the March Brent oil contract rose 0.68% or 0.42 to trade at $62.41 a barrel.

AUD/USD was unchanged 0.01% to 0.67, while AUD/JPY rose 0.27% to 105.37.

The US Dollar Index Futures was up 0.02% at 98.71.

Risk Warnings and Disclaimers

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Australia stocks higher at close of trade; S&P/ASX 200 up 0.15%

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Apple

-0.21%

Advanced Micro Devices

Investing.com – Australia stocks were higher after the close on Wednesday, as gains in the IT, Materials and Metals & Mining sectors led shares higher.

At the close in Sydney, the S&P/ASX 200 gained 0.15%.

The best performers of the session on the S&P/ASX 200 were Lynas Rare Earths Ltd (ASX:LYC), which rose 15.13% or 1.99 points to trade at 15.14 at the close. Meanwhile, IperionX Limited (ASX:IPX) added 8.29% or 0.51 points to end at 6.66 and Nickel Mines Ltd (ASX:NIC) was up 7.37% or 0.07 points to 1.02 in late trade.

The worst performers of the session were Harvey Norman Holdings Ltd (ASX:HVN), which fell 5.00% or 0.35 points to trade at 6.55 at the close. Viva Energy Group Ltd (ASX:VEA) declined 4.31% or 0.09 points to end at 2.00 and Beach Energy Ltd (ASX:BPT) was down 3.51% or 0.04 points to 1.10.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 671 to 503 and 376 ended unchanged.

Shares in Nickel Mines Ltd (ASX:NIC) rose to 52-week highs; rising 7.37% or 0.07 to 1.02.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was down 0.85% to 10.33.

Gold Futures for February delivery was down 0.40% or 17.90 to $4,478.20 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February fell 1.65% or 0.94 to hit $56.19 a barrel, while the March Brent oil contract fell 1.27% or 0.77 to trade at $59.93 a barrel.

AUD/USD was unchanged 0.25% to 0.68, while AUD/JPY rose 0.09% to 105.66.

The US Dollar Index Futures was down 0.04% at 98.28.

Risk Warnings and Disclaimers

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Australia stocks higher at close of trade; S&P/ASX 200 up 0.15%

Investing.com

Advanced Micro Devices

-3.84%

Investing.com – Australia stocks were higher after the close on Friday, as gains in the Energy, Financials and Telecoms Services sectors led shares higher.

At the close in Sydney, the S&P/ASX 200 gained 0.15%.

The best performers of the session on the S&P/ASX 200 were DroneShield Ltd (ASX:DRO), which rose 7.95% or 0.25 points to trade at 3.33 at the close. Meanwhile, Nickel Mines Ltd (ASX:NIC) added 7.19% or 0.06 points to end at 0.89 and Paladin Energy Ltd (ASX:PDN) was up 6.15% or 0.59 points to 10.18 in late trade.

The worst performers of the session were Northern Star Resources Ltd (ASX:NST), which fell 8.23% or 2.20 points to trade at 24.53 at the close. Capstone Copper Corp DRC (ASX:CSC) declined 4.09% or 0.62 points to end at 14.54 and Life360 Inc (ASX:360) was down 3.10% or 1.04 points to 32.49.

Rising stocks outnumbered declining ones on the Sydney Stock Exchange by 657 to 451 and 375 ended unchanged.

Shares in Nickel Mines Ltd (ASX:NIC) rose to 52-week highs; up 7.19% or 0.06 to 0.89. Shares in Paladin Energy Ltd (ASX:PDN) rose to 52-week highs; up 6.15% or 0.59 to 10.18.

The S&P/ASX 200 VIX, which measures the implied volatility of S&P/ASX 200 options, was up 0.69% to 9.61.

Gold Futures for February delivery was up 1.16% or 50.30 to $4,391.40 a troy ounce. Elsewhere in commodities trading, Crude oil for delivery in February rose 0.54% or 0.31 to hit $57.73 a barrel, while the March Brent oil contract rose 0.53% or 0.32 to trade at $61.17 a barrel.

AUD/USD was unchanged 0.40% to 0.67, while AUD/JPY rose 0.50% to 105.07.

The US Dollar Index Futures was down 0.11% at 97.94.

Risk Warnings and Disclaimers

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Nicolet Bankshares (NIC): Buy, Sell, or Hold Post Q3 Earnings?

Stock Story

Nicolet Bankshares

+0.70%

Nicolet Bankshares currently trades at $122.16 per share and has shown little upside over the past six months, posting a small loss of 1.1%. The stock also fell short of the S&P 500’s 11.3% gain during that period.

Why Are We Positive On NIC?

1. Net Interest Income Skyrockets, Fueling Growth Opportunities

Our experience and research show the market cares primarily about a bank’s net interest income growth as one-time fees are considered a lower-quality and non-recurring revenue source.

Nicolet Bankshares’s net interest income has grown at a 18.8% annualized rate over the last five years, much better than the broader banking industry and faster than its total revenue.

2. Projected Net Interest Income Growth Is Remarkable

Over the next 12 months, sell-side analysts expect Nicolet Bankshares’s net interest income to rise by 54.4%, an improvement versus its 10.1% annualized growth for the past two years.

3. Increasing Net Interest Margin Juices Financials

Over the past two years, Nicolet Bankshares’s net interest margin averaged 3.6%, climbing by 65 basis points (100 basis points = 1 percentage point) over that period.