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South Plains Financial (SPFI) Hits Fresh High: Is There Still Room to Run?
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Have you been paying attention to shares of South Plains Financial (SPFI - Free Report) ? Shares have been on the move with the stock up 6.4% over the past month. The stock hit a new 52-week high of $26.67 in the previous session. South Plains Financial has gained 40.4% since the start of the year compared to the 23.1% move for the Zacks Finance sector and the 45.3% return for the Zacks Banks - Southeast 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 26, 2021, South Plains Financial reported EPS of $0.82 versus consensus estimate of $0.72 while it beat the consensus revenue estimate by 6.88%.
For the current fiscal year, South Plains Financial is expected to post earnings of $3.12 per share on $218.2 million in revenues. This represents a 25.81% change in EPS on a -2.54% change in revenues. For the next fiscal year, the company is expected to earn $2.45 per share on $207.8 million in revenues. This represents a year-over-year change of -21.47% and -4.77%, respectively.
Valuation Metrics
South Plains 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 is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
South Plains Financial has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 8.7X versus its peer group's average of 13.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, South Plains 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 South Plains Financial meets the list of requirements. Thus, it seems as though South Plains Financial shares could have a bit more room to run in the near term.
How Does South Plains Financial Stack Up to the Competition?
Shares of South Plains 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 Summit Financial Group , Reliant Bancorp , and Dime Community Bancshares (DCOM - 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.
The Zacks Industry Rank is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for South Plains Financial, even beyond its own solid fundamental situation.
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South Plains Financial (SPFI) Hits Fresh High: Is There Still Room to Run?
Have you been paying attention to shares of South Plains Financial (SPFI - Free Report) ? Shares have been on the move with the stock up 6.4% over the past month. The stock hit a new 52-week high of $26.67 in the previous session. South Plains Financial has gained 40.4% since the start of the year compared to the 23.1% move for the Zacks Finance sector and the 45.3% return for the Zacks Banks - Southeast 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 26, 2021, South Plains Financial reported EPS of $0.82 versus consensus estimate of $0.72 while it beat the consensus revenue estimate by 6.88%.
For the current fiscal year, South Plains Financial is expected to post earnings of $3.12 per share on $218.2 million in revenues. This represents a 25.81% change in EPS on a -2.54% change in revenues. For the next fiscal year, the company is expected to earn $2.45 per share on $207.8 million in revenues. This represents a year-over-year change of -21.47% and -4.77%, respectively.
Valuation Metrics
South Plains 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 is due for a pullback from this level.
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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
South Plains Financial has a Value Score of A. The stock's Growth and Momentum Scores are C and B, respectively, giving the company a VGM Score of A.
In terms of its value breakdown, the stock currently trades at 8.5X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 8.7X versus its peer group's average of 13.4X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, South Plains 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 South Plains Financial meets the list of requirements. Thus, it seems as though South Plains Financial shares could have a bit more room to run in the near term.
How Does South Plains Financial Stack Up to the Competition?
Shares of South Plains 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 Summit Financial Group , Reliant Bancorp , and Dime Community Bancshares (DCOM - 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.
The Zacks Industry Rank is in the top 21% of all the industries we have in our universe, so it looks like there are some nice tailwinds for South Plains Financial, even beyond its own solid fundamental situation.