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4 Reasons to Add Sierra Bancorp (BSRR) Stock to Your Portfolio
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Sierra Bancorp (BSRR - Free Report) stock looks like an attractive pick right now, given its solid fundamentals and good growth prospects. Hence, it seems a good idea to add the stock to your portfolio now.
The company has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for BSRR’s 2023 earnings has been revised 9.7% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
In the past three months, shares of BSRR have gained 18.7% compared with the industry’s growth of 9.1%.
Image Source: Zacks Investment Research
We have mentioned some factors below that make Sierra Bancorp stock a solid pick now.
Earnings Growth: The company’s earnings witnessed growth of 4.7% in the last three to five years. The uptrend is expected to continue in the near term. In 2023, BSRR’s earnings are projected to grow 16%.
Revenue Strength: Sierra Bancorp’s revenues witnessed a compound annual growth rate of 7.6% over the last five years (2017-2022), with the uptrend continuing in the first six months of 2023. The top line is expected to continue to grow in the near term, which can be seen from the projected sales growth rates of 1.6% for 2023 and 0.1% for 2024.
Strong Leverage: Sierra Bancorp has a debt/equity ratio of 0.27, lower than the industry average of 0.38. This shows that the company will be more financially stable than its peers in adverse economic conditions.
Favorable Valuation: The BSRR stock looks undervalued right now when compared with its peers. It has a price/sales ratio of 1.69, lower than the industry average of 1.83. Also, its price/earnings (F1) ratio of 7.63 compares favorably with the industry’s 7.87.
BSRR has a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Key Picks
A couple of other top-ranked stocks from the finance space are SEI Investments Company (SEIC - Free Report) and Preferred Bank (PFBC - Free Report) .
Preferred Bank’s current-year earnings estimates have been revised 6.3% upward over the past 60 days. PFBC’s shares have gained 22.4% over the past three months. PFBC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SEIC’s current-year earnings has been revised 3.8% upward over the past 60 days. Over the past three months, SEIC’s share price has increased 6%. The stock currently carries a Zacks Rank #2.
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4 Reasons to Add Sierra Bancorp (BSRR) Stock to Your Portfolio
Sierra Bancorp (BSRR - Free Report) stock looks like an attractive pick right now, given its solid fundamentals and good growth prospects. Hence, it seems a good idea to add the stock to your portfolio now.
The company has been witnessing upward earnings estimate revisions of late, reflecting analysts’ optimism regarding its earnings growth potential. Over the past 60 days, the Zacks Consensus Estimate for BSRR’s 2023 earnings has been revised 9.7% upward. Thus, the company currently carries a Zacks Rank #2 (Buy).
In the past three months, shares of BSRR have gained 18.7% compared with the industry’s growth of 9.1%.
Image Source: Zacks Investment Research
We have mentioned some factors below that make Sierra Bancorp stock a solid pick now.
Earnings Growth: The company’s earnings witnessed growth of 4.7% in the last three to five years. The uptrend is expected to continue in the near term. In 2023, BSRR’s earnings are projected to grow 16%.
Revenue Strength: Sierra Bancorp’s revenues witnessed a compound annual growth rate of 7.6% over the last five years (2017-2022), with the uptrend continuing in the first six months of 2023. The top line is expected to continue to grow in the near term, which can be seen from the projected sales growth rates of 1.6% for 2023 and 0.1% for 2024.
Strong Leverage: Sierra Bancorp has a debt/equity ratio of 0.27, lower than the industry average of 0.38. This shows that the company will be more financially stable than its peers in adverse economic conditions.
Favorable Valuation: The BSRR stock looks undervalued right now when compared with its peers. It has a price/sales ratio of 1.69, lower than the industry average of 1.83. Also, its price/earnings (F1) ratio of 7.63 compares favorably with the industry’s 7.87.
BSRR has a Value Score of B. Our research shows that stocks with a Value Score of A or B, when combined with a Zacks Rank #1 (Strong Buy) or 2, offer the best upside potential.
Other Key Picks
A couple of other top-ranked stocks from the finance space are SEI Investments Company (SEIC - Free Report) and Preferred Bank (PFBC - Free Report) .
Preferred Bank’s current-year earnings estimates have been revised 6.3% upward over the past 60 days. PFBC’s shares have gained 22.4% over the past three months. PFBC currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for SEIC’s current-year earnings has been revised 3.8% upward over the past 60 days. Over the past three months, SEIC’s share price has increased 6%. The stock currently carries a Zacks Rank #2.