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Red River Bancshares, Inc. (RRBI) Hit a 52 Week High, Can the Run Continue?
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Shares of Red River Bancshares (RRBI - Free Report) have been strong performers lately, with the stock up 12.2% over the past month. The stock hit a new 52-week high of $63 in the previous session. Red River Bancshares has gained 16.7% since the start of the year compared to the 9% gain for the Zacks Finance sector and the 3.8% return for the Zacks Banks - Southwest industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2025, Red River Bancshares reported EPS of $1.52 versus consensus estimate of $1.29.
For the current fiscal year, Red River Bancshares is expected to post earnings of $5.86 per share on $120.78 in revenues. This represents a 18.38% change in EPS on a 10.06% change in revenues. For the next fiscal year, the company is expected to earn $6.02 per share on $125.45 in revenues. This represents a year-over-year change of 2.79% and 3.87%, respectively.
Valuation Metrics
While Red River Bancshares has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
Red River Bancshares has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.8X. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 11.6X. 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 is even more important than the company's VGM Score. Fortunately, Red River Bancshares 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 Red River Bancshares passes the test. Thus, it seems as though Red River Bancshares shares could have a bit more room to run in the near term.
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Red River Bancshares, Inc. (RRBI) Hit a 52 Week High, Can the Run Continue?
Shares of Red River Bancshares (RRBI - Free Report) have been strong performers lately, with the stock up 12.2% over the past month. The stock hit a new 52-week high of $63 in the previous session. Red River Bancshares has gained 16.7% since the start of the year compared to the 9% gain for the Zacks Finance sector and the 3.8% return for the Zacks Banks - Southwest industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on April 30, 2025, Red River Bancshares reported EPS of $1.52 versus consensus estimate of $1.29.
For the current fiscal year, Red River Bancshares is expected to post earnings of $5.86 per share on $120.78 in revenues. This represents a 18.38% change in EPS on a 10.06% change in revenues. For the next fiscal year, the company is expected to earn $6.02 per share on $125.45 in revenues. This represents a year-over-year change of 2.79% and 3.87%, respectively.
Valuation Metrics
While Red River Bancshares has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
Red River Bancshares has a Value Score of B. The stock's Growth and Momentum Scores are C and C, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 12.8X. On a trailing cash flow basis, the stock currently trades at 11.4X versus its peer group's average of 11.6X. 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 is even more important than the company's VGM Score. Fortunately, Red River Bancshares 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 Red River Bancshares passes the test. Thus, it seems as though Red River Bancshares shares could have a bit more room to run in the near term.