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3 Reasons to Invest in 1st Source (SRCE) Stock Right Now

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Given the gradual economic improvement, stimulus paymentsand resumption of businesses, it seems to be a wise idea to add 1st Source Corporation (SRCE - Free Report) stock to your portfolio now. The company’s robust fundamentals and solid earnings growth prospects are supporting factors.

Moreover, the stock has been witnessing upward earnings estimate revisions of late, reflecting that analysts are optimistic regarding its growth potential. Over the past 30 days, the Zacks Consensus Estimate for its current-year earnings has moved 18.1% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).

Looking at its price performance, shares of 1st Source have rallied 22.2% over the past six months compared with the industry’s growth of 27.2%.


Mentioned below are the other factors that make the company a solid bet now.

Strong Organic Growth: 1st Source Corporation’s revenues witnessed a compounded annual growth rate (CAGR) of 6.9% over the last five years (ended 2020). The company’s projected sales growth (F1/F0) of 1.6% against nil for the industry highlights continued upward momentum in revenues.

Earnings per Share Strength: 1st Source Corporation witnessed earnings growth of 11.38% in the last three-five years. This earnings momentum is likely to continue in the near term as reflected by the company’s projected earnings per share growth rate (F1/F0) of 27.6%.

Moreover, the company has an impressive earnings surprise history. Its earnings have surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with the average beat being 27.46%.

Strong Leverage: 1st Source Corporation’s debt/equity ratio is valued at 0.15 compared with the industry average of 0.28, indicating relatively lower debt burden. It highlights the financial stability of the company despite an unstable economic environment.

Other Stocks to Consider

Wells Fargo & Company (WFC - Free Report) has witnessed a 1.9% upward estimate revision over the past 30 days. The company’s shares have rallied 53.2% so far this year. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bank of Hawaii Corporation’s (BOH - Free Report) shares have gained 17.7% so far this year. Further, the company’s earnings estimates for the ongoing year have moved 11.1% north in the past 60 days. It currently has a Zacks Rank of 2.

UMB Financial Corporation (UMBF - Free Report) has witnessed 25.9% upward estimates revision for the current-year over the past 30 days. Shares of this Zacks #2 Ranked stock have gained 41.5% so far this year.

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