Back to top

Image: Bigstock

Southern First Bancshares, Inc. (SFST) Hit a 52 Week High, Can the Run Continue?

Read MoreHide Full Article

A strong stock as of late has been Southern First (SFST - Free Report) . Shares have been marching higher, with the stock up 12.3% over the past month. The stock hit a new 52-week high of $46.62 in the previous session. Southern First has gained 17.3% since the start of the year compared to the 13.5% gain for the Zacks Finance sector and the -1.2% return for the Zacks Banks - Southeast industry.

What's Driving the Outperformance?

The stock has a great 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 28, 2025, Southern First reported EPS of $1.07 versus consensus estimate of $0.89.

For the current fiscal year, Southern First is expected to post earnings of $3.42 per share on $115.77 in revenues. This represents a 79.06% change in EPS on a 23.99% change in revenues. For the next fiscal year, the company is expected to earn $4.07 per share on $130.42 in revenues. This represents a year-over-year change of 19.01% and 12.65%, respectively.

Valuation Metrics

Southern First 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 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.

Southern First has a Value Score of B. The stock's Growth and Momentum Scores are B and A, respectively, giving the company a VGM Score of A.

In terms of its value breakdown, the stock currently trades at 13.6X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.7X. On a trailing cash flow basis, the stock currently trades at 18.2X versus its peer group's average of 10.7X. 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, Southern First 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 Southern First meets the list of requirements. Thus, it seems as though Southern First shares could have potential in the weeks and months to come.

How Does SFST Stack Up to the Competition?

Shares of SFST 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 Home Bancorp, Inc. (HBCP - Free Report) . HBCP has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.

Earnings were strong last quarter. Home Bancorp, Inc. beat our consensus estimate by 16.06%, and for the current fiscal year, HBCP is expected to post earnings of $5.64 per share on revenue of $147.9 million.

Shares of Home Bancorp, Inc. have gained 3.7% over the past month, and currently trade at a forward P/E of 9.37X and a P/CF of 9.99X.

The Banks - Southeast industry is in the top 14% of all the industries we have in our universe, so it looks like there are some nice tailwinds for SFST and HBCP, even beyond their own solid fundamental situation.


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Southern First Bancshares, Inc. (SFST) - free report >>

Home Bancorp, Inc. (HBCP) - free report >>

Published in