This Bank Is a True Growth Stock
If you are looking for a true growth stock in the banking sector, then look no farther than the $163 billion asset SVB Financial Group (NASDAQ: SIVB), the parent company of Silicon Valley Bank. The bank, based in Santa Clara, California, pioneered start-up banking in the 1980s, and it also caters heavily to the private equity and venture capital communities.
Growth stocks generate revenue and earnings that increase at a higher rate than the industry average, and SVB definitely meets this definition. Over the last four quarters, the bank has not generated less than a 20% return on equity each quarter, the technical rate of return a company makes on its capital from stockholders.
SVB stock should continue to perform well, despite its already high valuation. Here's why.
Source Fool.com
