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LIMESTONE BANCORP, INC. (LMST) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of LIMESTONE BANCORP, INC. ? Shares have been on the move with the stock up 24.1% over the past month. The stock hit a new 52-week high of $24.56 in the previous session. LIMESTONE BANCORP, INC. has gained 31.3% since the start of the year compared to the -16.7% move for the Zacks Finance sector and the -14.5% return for the Zacks Banks - Northeast industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 19, 2022, LIMESTONE BANCORP, INC. reported EPS of $0.76 versus consensus estimate of $0.55 while it beat the consensus revenue estimate by 6.62%.
For the current fiscal year, LIMESTONE BANCORP, INC. is expected to post earnings of $2.39 per share on $57 million in revenues. This represents a 21.94% change in EPS on an 8.24% change in revenues. For the next fiscal year, the company is expected to earn $2.30 per share on $61.15 million in revenues. This represents a year-over-year change of -3.97% and 7.28%, respectively.
Valuation Metrics
LIMESTONE BANCORP, INC. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
LIMESTONE BANCORP, INC. has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.9X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 8.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, LIMESTONE BANCORP, INC. currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if LIMESTONE BANCORP, INC. passes the test. Thus, it seems as though LIMESTONE BANCORP, INC. shares could still be poised for more gains ahead.
How Does LMST Stack Up to the Competition?
Shares of LMST have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HBT Financial, Inc. (HBT - Free Report) . HBT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. HBT Financial, Inc. beat our consensus estimate by 12.24%, and for the current fiscal year, HBT is expected to post earnings of $2.28 per share on revenue of $175.66 million.
Shares of HBT Financial, Inc. have gained 6.2% over the past month, and currently trade at a forward P/E of 9.68X and a P/CF of 8.07X.
The Banks - Northeast industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LMST and HBT, even beyond their own solid fundamental situation.
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LIMESTONE BANCORP, INC. (LMST) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of LIMESTONE BANCORP, INC. ? Shares have been on the move with the stock up 24.1% over the past month. The stock hit a new 52-week high of $24.56 in the previous session. LIMESTONE BANCORP, INC. has gained 31.3% since the start of the year compared to the -16.7% move for the Zacks Finance sector and the -14.5% return for the Zacks Banks - Northeast industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on October 19, 2022, LIMESTONE BANCORP, INC. reported EPS of $0.76 versus consensus estimate of $0.55 while it beat the consensus revenue estimate by 6.62%.
For the current fiscal year, LIMESTONE BANCORP, INC. is expected to post earnings of $2.39 per share on $57 million in revenues. This represents a 21.94% change in EPS on an 8.24% change in revenues. For the next fiscal year, the company is expected to earn $2.30 per share on $61.15 million in revenues. This represents a year-over-year change of -3.97% and 7.28%, respectively.
Valuation Metrics
LIMESTONE BANCORP, INC. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as these give investors a variety of ways to comb through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
LIMESTONE BANCORP, INC. has a Value Score of C. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 9.9X. On a trailing cash flow basis, the stock currently trades at 7.9X versus its peer group's average of 8.8X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, LIMESTONE BANCORP, INC. currently has a Zacks Rank of #1 (Strong Buy) thanks to rising earnings estimates.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if LIMESTONE BANCORP, INC. passes the test. Thus, it seems as though LIMESTONE BANCORP, INC. shares could still be poised for more gains ahead.
How Does LMST Stack Up to the Competition?
Shares of LMST have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is HBT Financial, Inc. (HBT - Free Report) . HBT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. HBT Financial, Inc. beat our consensus estimate by 12.24%, and for the current fiscal year, HBT is expected to post earnings of $2.28 per share on revenue of $175.66 million.
Shares of HBT Financial, Inc. have gained 6.2% over the past month, and currently trade at a forward P/E of 9.68X and a P/CF of 8.07X.
The Banks - Northeast industry is in the top 6% of all the industries we have in our universe, so it looks like there are some nice tailwinds for LMST and HBT, even beyond their own solid fundamental situation.