Have you been paying attention to shares of BOK Financial (
BOKF Quick Quote BOKF - Free Report) ? Shares have been on the move with the stock up 12% over the past month. The stock hit a new 52-week high of $103.25 in the previous session. BOK Financial has gained 50.3% since the start of the year compared to the 25.6% move for the Zacks Finance sector and the 37.2% return for the Zacks Banks - Southwest 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 20, 2021, BOK Financial reported EPS of $2.74 versus consensus estimate of $1.82 while it beat the consensus revenue estimate by 13.05%.
For the current fiscal year, BOK Financial is expected to post earnings of $8.44 per share on $1.86 billion in revenues. This represents a 36.35% change in EPS on a -4.81% change in revenues. For the next fiscal year, the company is expected to earn $6.65 per share on $1.83 billion in revenues. This represents a year-over-year change of -21.17% and -1.74%, respectively.
BOK Financial 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
BOK Financial has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 12.2X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.4X versus its peer group's average of 15.3X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, BOK Financial currently has a Zacks Rank of #2 (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 BOK Financial fits the bill. Thus, it seems as though BOK Financial shares could still be poised for more gains ahead.
How Does BOK Financial Stack Up to the Competition?
Shares of BOK Financial have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also impressive, including Customers Bancorp (
CUBI Quick Quote CUBI - Free Report) , Chemung Financial ( CHMG Quick Quote CHMG - Free Report) , and Camden National ( CAC Quick Quote CAC - Free Report) , all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
However, it is worth noting that the Zacks Industry Rank for this group is in the bottom half of the ranking, so it isn't all good news for BOK Financial. Still, the fundamentals for BOK Financial are promising, and it still has potential despite being at a 52-week high.