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4 Reasons to Add First Bancorp (FBNC) Stock to Your Portfolio
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First Bancorp (FBNC - Free Report) stock looks like a good investment option right now. The company’s strong fundamentals and good sales growth prospects make it a promising pick.
Moreover, the stock has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for First Bancorp’s 2021 earnings has been revised 1.2% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
Its price performance also seems decent. The stock has gained 23.3% so far this year compared with the industry’s growth of 27%.
Image Source: Zacks Investment Research
Mentioned below are some other aspects that make First Bancorp a solid pick right now.
Earnings Growth: The company’s earnings witnessed growth of 20.6% in the last three-five years, higher than the industry’s growth of 12.6%. The uptrend is expected to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate of 31.3% for 2021.
It also has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 32.8%.
Revenue Strength: First Bancorp’s revenues witnessed a compound annual growth rate (CAGR) of 17.1% over the last six years (2015-2020). The top line is expected to continue to grow in the near term, as can be seen from its projected sales growth rates of 1.4% for 2021 and 10.3% for 2022.
Strong Leverage: First Bancorp currently has a debt/equity ratio of 0.07, which compares favorably with the industry average of 0.16. This shows that the company will likely be financially stable than peers, even in adverse economic conditions.
Superior Return on Equity (ROE): The company’s ROE currently stands at 11.75%, which is slightly higher than the industry average of 11.48%. This indicates that the company reinvests its cash more efficiently than peers.
Other Key Picks
A few other top-ranked stocks from the same space are mentioned below.
American National Bankshares Inc. has witnessed an upward earnings estimate revision of 11.3% for the current year over the past 60 days. Its share price has increased 30.9% so far this year. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Community Trust Bancorp, Inc. (CTBI - Free Report) carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its current-year earnings has been revised 9.9% upward over the past 60 days. Its shares have gained 12.3% year to date.
Over the past 60 days, Popular, Inc.’s (BPOP - Free Report) earnings estimates for 2021 have increased 8.4%. Its share price has rallied 33% so far this year. The stock currently carries a Zacks Rank #2.
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4 Reasons to Add First Bancorp (FBNC) Stock to Your Portfolio
First Bancorp (FBNC - Free Report) stock looks like a good investment option right now. The company’s strong fundamentals and good sales growth prospects make it a promising pick.
Moreover, the stock has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 30 days, the Zacks Consensus Estimate for First Bancorp’s 2021 earnings has been revised 1.2% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
Its price performance also seems decent. The stock has gained 23.3% so far this year compared with the industry’s growth of 27%.
Image Source: Zacks Investment Research
Mentioned below are some other aspects that make First Bancorp a solid pick right now.
Earnings Growth: The company’s earnings witnessed growth of 20.6% in the last three-five years, higher than the industry’s growth of 12.6%. The uptrend is expected to continue in the near term as reflected by the company’s projected earnings per share (EPS) growth rate of 31.3% for 2021.
It also has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 32.8%.
Revenue Strength: First Bancorp’s revenues witnessed a compound annual growth rate (CAGR) of 17.1% over the last six years (2015-2020). The top line is expected to continue to grow in the near term, as can be seen from its projected sales growth rates of 1.4% for 2021 and 10.3% for 2022.
Strong Leverage: First Bancorp currently has a debt/equity ratio of 0.07, which compares favorably with the industry average of 0.16. This shows that the company will likely be financially stable than peers, even in adverse economic conditions.
Superior Return on Equity (ROE): The company’s ROE currently stands at 11.75%, which is slightly higher than the industry average of 11.48%. This indicates that the company reinvests its cash more efficiently than peers.
Other Key Picks
A few other top-ranked stocks from the same space are mentioned below.
American National Bankshares Inc. has witnessed an upward earnings estimate revision of 11.3% for the current year over the past 60 days. Its share price has increased 30.9% so far this year. The stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Community Trust Bancorp, Inc. (CTBI - Free Report) carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for its current-year earnings has been revised 9.9% upward over the past 60 days. Its shares have gained 12.3% year to date.
Over the past 60 days, Popular, Inc.’s (BPOP - Free Report) earnings estimates for 2021 have increased 8.4%. Its share price has rallied 33% so far this year. The stock currently carries a Zacks Rank #2.