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4 Reasons Why First Financial (FFIN) Stock is a Good Pick Now
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First Financial Bankshares (FFIN - Free Report) remains well-poised for top-line growth, driven by continued improvements in loans and deposit balances. The company is expected to keep enhancing shareholder value through efficient capital deployment activities, supported by a solid balance sheet. Hence, it seems to be a wise idea to add the stock to your portfolio now.
Analysts seem to be optimistic regarding the company’s earnings growth prospects. Over the past 60 days, the Zacks Consensus Estimate for FFIN’s 2022 earnings has been revised 4.2% upward. Hence, First Financial currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, over the past year, shares of First Financial have gained 0.6% compared with 13.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Some other factors that make First Financial a good investment option now are mentioned below.
Revenue Strength: First Financial has been witnessing consistent improvement in revenues, driven by growth in loans and deposit balances. Over the last six years (ended 2021), total revenues saw a compound annual growth rate (CAGR) of 10.4%.
Backed by strong balance sheet and liquidity positions, the company is expected to be able to undertake inorganic expansion moves. In 2022, its revenues are projected to grow 0.5%, whereas revenues are expected to witness growth of 6.2% in 2023.
Earnings Growth: FFIN recorded earnings growth of 17.2% over the past three to five years, higher than the industry average of 11.6%. While the company’s earnings are projected to decline 5.7% in 2022, the trend will reverse after that. In 2023, FFIN’s earnings are expected to grow 8.3%.
Moreover, First Financial has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average beat being 4.7%.
Superior Return on Equity (ROE): First Financial has an ROE of 13.23% compared with the industry average of 11.56%. This indicates the company’s superiority in utilizing shareholders’ funds.
Strong Leverage: First Financial’s debt/equity ratio is nil against the industry average of 0.10. The relatively strong financial health of the company is likely to help it perform better than its peers in a dynamic business environment.
Other Stocks Worth Considering
A couple of other top-ranked finance stocks amid the current market backdrop are East West Bancorp (EWBC - Free Report) and Cullen/Frost Bankers, Inc. (CFR - Free Report) .
East West Bancorp currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its 2022 earnings has moved 6.6% upward over the past 60 days. So far this year, EWBC’s shares have gained 3.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cullen/Frost Bankers currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its 2022 earnings has been revised 13.4% upward over the past 60 days. CFR’s shares have rallied 11.8% in the year-to-date period.
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4 Reasons Why First Financial (FFIN) Stock is a Good Pick Now
First Financial Bankshares (FFIN - Free Report) remains well-poised for top-line growth, driven by continued improvements in loans and deposit balances. The company is expected to keep enhancing shareholder value through efficient capital deployment activities, supported by a solid balance sheet. Hence, it seems to be a wise idea to add the stock to your portfolio now.
Analysts seem to be optimistic regarding the company’s earnings growth prospects. Over the past 60 days, the Zacks Consensus Estimate for FFIN’s 2022 earnings has been revised 4.2% upward. Hence, First Financial currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, over the past year, shares of First Financial have gained 0.6% compared with 13.2% growth of the industry it belongs to.
Image Source: Zacks Investment Research
Some other factors that make First Financial a good investment option now are mentioned below.
Revenue Strength: First Financial has been witnessing consistent improvement in revenues, driven by growth in loans and deposit balances. Over the last six years (ended 2021), total revenues saw a compound annual growth rate (CAGR) of 10.4%.
Backed by strong balance sheet and liquidity positions, the company is expected to be able to undertake inorganic expansion moves. In 2022, its revenues are projected to grow 0.5%, whereas revenues are expected to witness growth of 6.2% in 2023.
Earnings Growth: FFIN recorded earnings growth of 17.2% over the past three to five years, higher than the industry average of 11.6%. While the company’s earnings are projected to decline 5.7% in 2022, the trend will reverse after that. In 2023, FFIN’s earnings are expected to grow 8.3%.
Moreover, First Financial has an impressive earnings surprise history. The company's earnings surpassed the Zacks Consensus Estimate in three and met in one of the trailing four quarters, the average beat being 4.7%.
Superior Return on Equity (ROE): First Financial has an ROE of 13.23% compared with the industry average of 11.56%. This indicates the company’s superiority in utilizing shareholders’ funds.
Strong Leverage: First Financial’s debt/equity ratio is nil against the industry average of 0.10. The relatively strong financial health of the company is likely to help it perform better than its peers in a dynamic business environment.
Other Stocks Worth Considering
A couple of other top-ranked finance stocks amid the current market backdrop are East West Bancorp (EWBC - Free Report) and Cullen/Frost Bankers, Inc. (CFR - Free Report) .
East West Bancorp currently sports a Zacks Rank #1 (Strong Buy). The Zacks Consensus Estimate for its 2022 earnings has moved 6.6% upward over the past 60 days. So far this year, EWBC’s shares have gained 3.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cullen/Frost Bankers currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its 2022 earnings has been revised 13.4% upward over the past 60 days. CFR’s shares have rallied 11.8% in the year-to-date period.