Back to top

Image: Bigstock

QCR Holdings, Inc. (QCRH) Hits Fresh High: Is There Still Room to Run?

Read MoreHide Full Article

A strong stock as of late has been QCR Holdings (QCRH - Free Report) . Shares have been marching higher, with the stock up 6.1% over the past month. The stock hit a new 52-week high of $103.34 in the previous session. QCR Holdings has gained 24% since the start of the year compared to the 7.3% move for the Zacks Finance sector and the 7.4% return for the Zacks Banks - Midwest 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 July 22, 2026, QCR Holdings reported EPS of $2.19 versus consensus estimate of $1.9.

For the current fiscal year, QCR Holdings is expected to post earnings of $8.5 per share on $390.1 in revenues. This represents a 11.26% change in EPS on a 5.56% change in revenues. For the next fiscal year, the company is expected to earn $8.87 per share on $413.3 in revenues. This represents a year-over-year change of 4.29% and 5.95%, respectively.

Valuation Metrics

While QCR Holdings has moved to its 52-week high in the recent past, 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 is due for a pullback from this level.

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). 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.

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

In terms of its value breakdown, the stock currently trades at 12.2X current fiscal year EPS estimates, which is a premium to the peer industry average of 11.5X. On a trailing cash flow basis, the stock currently trades at 12.2X versus its peer group's average of 11.2X. 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 look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, QCR Holdings 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 QCR Holdings meets the list of requirements. Thus, it seems as though QCR Holdings shares could have a bit more room to run in the near term.

How Does QCRH Stack Up to the Competition?

Shares of QCRH 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 Commerce Bancshares, Inc. (CBSH - Free Report) . CBSH 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. Commerce Bancshares, Inc. beat our consensus estimate by 5.77%, and for the current fiscal year, CBSH is expected to post earnings of $4.22 per share on revenue of $1.98 billion.

Shares of Commerce Bancshares, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 14.22X and a P/CF of 13.15X.

The Banks - Midwest industry is in the top 32% of all the industries we have in our universe, so it looks like there are some nice tailwinds for QCRH and CBSH, even beyond their own solid fundamental situation.

Published in