OFG

OFG Bancorp has been upgraded to a Zacks Rank #2 (Buy) rating, reflecting upward trends in earnings estimates over the past three months. The upgrade positions OFG in the top 20% of Zacks-covered stocks, suggesting potential near-term stock price appreciation driven by improving business fundamentals and institutional investor buying pressure.

OFG Bancorp, a San Juan-based financial holding company, is highlighted as an attractive income investment with a 2.64% dividend yield, outperforming its industry average of 2.17%. The company has demonstrated strong dividend growth with a 16.7% year-over-year increase and an average annual increase of 36.70% over the past 5 years. With a conservative 28% payout ratio and expected earnings growth of 10.48% for 2026, OFG presents a solid dividend play, though it carries a Zacks Rank of #3 (Hold).

OFG Bancorp reported quarterly earnings of $1.33 per share, beating consensus estimates of $1.25 and showing a 6.40% earnings surprise. However, revenues missed expectations slightly.

The stock has outperformed the S&P 500 by 29.2% year-to-date. OFG received a Zacks Rank #3 (Hold) rating, suggesting near-term performance in line with the market. Valley National, another Northeast bank, is expected to report results on October 22.