It seems to be a wise idea to add First BanCorp. (FBP - Free Report) stock to your portfolio now. Driven by strong fundamentals and good growth prospects, the company looks like a promising investment option amid the coronavirus outbreak-induced economic uncertainty.
Moreover, of late, analysts have been optimistic regarding its earnings growth potential. The Zacks Consensus Estimate for the company’s 2020 earnings has been revised 24.2% upward over the past 60 days. Thus, it currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, shares of First BanCorp have lost 12.6% over the past six months compared with a decline of 1% for the industry it belongs to.
Given its fundamental strength and positive estimate revisions, the price performance is expected to improve in the near term.
Mentioned below are some of the key factors that make First BanCorp a solid pick right now.
Earnings Per Share (EPS) Growth: In the last three-five years, the company witnessed EPS growth of 36.7%, higher than the industry average of 13.8%. While in 2020, earnings are projected to decline 45.3%, the trend will likely reverse thereafter. In 2021, the company’s earnings are expected to witness growth of 125.6%.
Moreover, its long-term (three-five years) projected EPS growth rate of 5.6% promises reward for investors.
Revenue Strength: First BanCorp’s revenues witnessed a CAGR of 3% over the last five years (2015-2019). The uptrend in revenues is expected to continue in the near term, as can be seen from the company’s projected sales growth rates of 7.1% for 2020 and 22.8% for 2021.
Valuation Favorable: First BanCorp stock looks undervalued right now with respect to its price-to-book (P/B) and price-to-sales (P/S) ratios. It has a P/B ratio of 0.61, below the industry average of 0.77. Moreover, its P/S ratio of 1.75 compares favorably with the industry’s 1.86.
Also, First BanCorp has a Value Score of A. Our research shows that stocks with a Value Score of A or B when combined with a Zacks Rank #1 (Strong Buy) or 2 offer the best upside potential.
Other Stocks Worth a Look
A few other top-ranked stocks from the finance space are mentioned below.
Origin Bancorp (OBNK - Free Report) has witnessed an upward earnings estimate revision of 37.6% for the current year over the past 60 days. Its share price has increased 9.9% over the past three months. It currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Interactive Brokers (IBKR - Free Report) has witnessed a northward earnings estimate revision of 29.7% for the current year over the past 60 days. Its share price has rallied 14.4% over the past three months. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Home Bancshares’ (HOMB - Free Report) current-year earnings has been revised 21.4% upward over the past 60 days. Its share price has increased marginally in the past three months. The company currently carries a Zacks Rank #2.
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