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Esquire Financial Holdings, Inc. (ESQ) Soars to 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of Esquire Financial Holdings, Inc. (ESQ - Free Report) ? Shares have been on the move with the stock up 11.8% over the past month. The stock hit a new 52-week high of $39.5 in the previous session. Esquire Financial Holdings, Inc. has gained 21.9% since the start of the year compared to the -10% move for the Zacks Finance sector and the -11.8% return for the Zacks Banks - Northeast 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 July 25, 2022, Esquire Financial Holdings, Inc. reported EPS of $0.78 versus consensus estimate of $0.71 while it beat the consensus revenue estimate by 9.24%.
For the current fiscal year, Esquire Financial Holdings, Inc. is expected to post earnings of $3.21 per share on $80.2 million in revenues. This represents a 52.13% change in EPS on a 23.91% change in revenues. For the next fiscal year, the company is expected to earn $3.81 per share on $93.9 million in revenues. This represents a year-over-year change of 18.69% and 17.08%, respectively.
Valuation Metrics
Esquire Financial Holdings, Inc. 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 they provide investors with an additional way to sort 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.
Esquire Financial Holdings, Inc. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12X current fiscal year EPS estimates, which is a premium to the peer industry average of 10X. On a trailing cash flow basis, the stock currently trades at 16.4X versus its peer group's average of 8.7X. 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, Esquire Financial Holdings, Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Esquire Financial Holdings, Inc. fits the bill. Thus, it seems as though Esquire Financial Holdings, Inc. shares could have potential in the weeks and months to come.
How Does ESQ Stack Up to the Competition?
Shares of ESQ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PeapackGladstone Financial Corporation (PGC - Free Report) . PGC has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. PeapackGladstone Financial Corporation beat our consensus estimate by 31.71%, and for the current fiscal year, PGC is expected to post earnings of $3.80 per share on revenue of $251.13 million.
Shares of PeapackGladstone Financial Corporation have gained 17.5% over the past month, and currently trade at a forward P/E of 8.87X and a P/CF of 8.34X.
The Banks - Northeast industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ESQ and PGC, even beyond their own solid fundamental situation.
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Esquire Financial Holdings, Inc. (ESQ) Soars to 52-Week High, Time to Cash Out?
Have you been paying attention to shares of Esquire Financial Holdings, Inc. (ESQ - Free Report) ? Shares have been on the move with the stock up 11.8% over the past month. The stock hit a new 52-week high of $39.5 in the previous session. Esquire Financial Holdings, Inc. has gained 21.9% since the start of the year compared to the -10% move for the Zacks Finance sector and the -11.8% return for the Zacks Banks - Northeast 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 July 25, 2022, Esquire Financial Holdings, Inc. reported EPS of $0.78 versus consensus estimate of $0.71 while it beat the consensus revenue estimate by 9.24%.
For the current fiscal year, Esquire Financial Holdings, Inc. is expected to post earnings of $3.21 per share on $80.2 million in revenues. This represents a 52.13% change in EPS on a 23.91% change in revenues. For the next fiscal year, the company is expected to earn $3.81 per share on $93.9 million in revenues. This represents a year-over-year change of 18.69% and 17.08%, respectively.
Valuation Metrics
Esquire Financial Holdings, Inc. 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 they provide investors with an additional way to sort 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.
Esquire Financial Holdings, Inc. has a Value Score of C. The stock's Growth and Momentum Scores are B and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 12X current fiscal year EPS estimates, which is a premium to the peer industry average of 10X. On a trailing cash flow basis, the stock currently trades at 16.4X versus its peer group's average of 8.7X. 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, Esquire Financial Holdings, Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Esquire Financial Holdings, Inc. fits the bill. Thus, it seems as though Esquire Financial Holdings, Inc. shares could have potential in the weeks and months to come.
How Does ESQ Stack Up to the Competition?
Shares of ESQ have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is PeapackGladstone Financial Corporation (PGC - Free Report) . PGC has a Zacks Rank of # 1 (Strong Buy) and a Value Score of C, a Growth Score of C, and a Momentum Score of A.
Earnings were strong last quarter. PeapackGladstone Financial Corporation beat our consensus estimate by 31.71%, and for the current fiscal year, PGC is expected to post earnings of $3.80 per share on revenue of $251.13 million.
Shares of PeapackGladstone Financial Corporation have gained 17.5% over the past month, and currently trade at a forward P/E of 8.87X and a P/CF of 8.34X.
The Banks - Northeast industry is in the top 7% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ESQ and PGC, even beyond their own solid fundamental situation.