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OFG Bancorp (OFG) Hit a 52 Week High, Can the Run Continue?
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Have you been paying attention to shares of OFG Bancorp (OFG - Free Report) ? Shares have been on the move with the stock up 9.3% over the past month. The stock hit a new 52-week high of $35.1 in the previous session. OFG Bancorp has gained 26.3% since the start of the year compared to the 12.1% move for the Zacks Finance sector and the -9.1% 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 October 20, 2023, OFG reported EPS of $0.95 versus consensus estimate of $0.92.
For the current fiscal year, OFG is expected to post earnings of $3.79 per share on $679.5 million in revenues. This represents a 10.17% change in EPS on a 11.8% change in revenues. For the next fiscal year, the company is expected to earn $3.75 per share on $690 million in revenues. This represents a year-over-year change of -1.06% and 1.55%, respectively.
Valuation Metrics
OFG 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
OFG has a Value Score of B. The stock's Growth and Momentum Scores are D and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.9X. On a trailing cash flow basis, the stock currently trades at 8.8X versus its peer group's average of 7.1X. 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, OFG 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 OFG meets the list of requirements. Thus, it seems as though OFG shares could have a bit more room to run in the near term.
How Does OFG Stack Up to the Competition?
Shares of OFG 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 Orange County Bancorp, Inc. (OBT - Free Report) . OBT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Orange County Bancorp, Inc. beat our consensus estimate by 24.81%, and for the current fiscal year, OBT is expected to post earnings of $5.06 per share on revenue of $100.4 million.
Shares of Orange County Bancorp, Inc. have gained 10.8% over the past month, and currently trade at a forward P/E of 8.35X and a P/CF of 9.89X.
The Banks - Northeast industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for OFG and OBT, even beyond their own solid fundamental situation.
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OFG Bancorp (OFG) Hit a 52 Week High, Can the Run Continue?
Have you been paying attention to shares of OFG Bancorp (OFG - Free Report) ? Shares have been on the move with the stock up 9.3% over the past month. The stock hit a new 52-week high of $35.1 in the previous session. OFG Bancorp has gained 26.3% since the start of the year compared to the 12.1% move for the Zacks Finance sector and the -9.1% 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 October 20, 2023, OFG reported EPS of $0.95 versus consensus estimate of $0.92.
For the current fiscal year, OFG is expected to post earnings of $3.79 per share on $679.5 million in revenues. This represents a 10.17% change in EPS on a 11.8% change in revenues. For the next fiscal year, the company is expected to earn $3.75 per share on $690 million in revenues. This represents a year-over-year change of -1.06% and 1.55%, respectively.
Valuation Metrics
OFG 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 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
OFG has a Value Score of B. The stock's Growth and Momentum Scores are D and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 8.9X. On a trailing cash flow basis, the stock currently trades at 8.8X versus its peer group's average of 7.1X. 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, OFG 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 OFG meets the list of requirements. Thus, it seems as though OFG shares could have a bit more room to run in the near term.
How Does OFG Stack Up to the Competition?
Shares of OFG 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 Orange County Bancorp, Inc. (OBT - Free Report) . OBT has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of C, and a Momentum Score of B.
Earnings were strong last quarter. Orange County Bancorp, Inc. beat our consensus estimate by 24.81%, and for the current fiscal year, OBT is expected to post earnings of $5.06 per share on revenue of $100.4 million.
Shares of Orange County Bancorp, Inc. have gained 10.8% over the past month, and currently trade at a forward P/E of 8.35X and a P/CF of 9.89X.
The Banks - Northeast industry may rank in the bottom 56% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for OFG and OBT, even beyond their own solid fundamental situation.