Back to top

Image: Bigstock

3 Reasons to Invest in Investar Holding (ISTR) Stock Now

Read MoreHide Full Article

Despite the continued concerns related to the coronavirus outbreak, it seems to be a wise idea to add Investar Holding Corporation (ISTR - Free Report) stock to your portfolio now, given the company’s fundamental strength and solid growth prospects.

Moreover, it has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. The Zacks Consensus Estimate for the company’s current-year earnings has been revised 3.9% upward over the past 30 days, while that for the next year has been revised upward by 30.9%. Thus, it currently sports a Zacks Rank #1 (Strong Buy).

Looking at its price performance, shares of the company have gained 11.5% over the past six months compared with the industry’s growth of 3.4%.






Mentioned below are some other factors that make Investar Holding stock an attractive investment option now.

Earnings per Share (EPS) Growth: The company witnessed EPS growth of 14.6% in the last three to five years, higher than the industry average of 13.7%. While its earnings are projected to decline 41.4% in 2020, the trend will likely reverse after that. In 2021, earnings are expected to grow 0.3%.

Revenue Strength: Investar Holding’s revenues witnessed a compounded annual growth rate (“CAGR”) of 15.6% over the last five years (2015-2019). The uptrend in revenues is expected to continue in the near term as reflected by the company’s projected sales growth rate of 16.6% for the current year.

Favorable Valuation: It seems to be trading at a discount currently with respect to its price/cash flow (P/CF) and price/book (P/B) ratios. The company has a P/CF ratio of 6.33, which is below the industry average of 7.17. Also, its P/B ratio of 0.62 is lower than the industry average of 0.77.

Moreover, the stock has a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 or 2 (Buy), offer the best upside potential.

Other Stocks Worth Considering

Moodys Corporation (MCO - Free Report) has witnessed an upward earnings estimate revision of 2.3% for the current year over the past 60 days. Its shares have gained 19.3% over the past six months. The company carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Interactive Brokers Group, Inc.’s (IBKR - Free Report) earnings estimates have been revised 2.3% upward for the current year over the past 60 days. Over the past six months, the Zacks Rank #2 company has gained 11.1%.

BlackRock, Inc.’s (BLK - Free Report) earnings estimates for the current year have been revised 1.9% upward over the past 60 days. Its shares have witnessed a rise of 25.6% over the past six months. The company currently carries a Zacks Rank #2.

More Stock News: This Is Bigger than the iPhone!

It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.

Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2021.

Click here for the 6 trades >>