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4 Reasons to Invest in First BanCorp (FBP) Stock Right Now
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It seems to be a wise idea to add the First BanCorp. (FBP - Free Report) stock to your portfolio now. Supported by the high interest rate environment and decent loan growth, the company is well-poised for top-line expansion.
Moreover, analysts are optimistic regarding the company’s earnings growth potential. The Zacks Consensus Estimate for FBP’s 2024 earnings has been revised 4.7% upward over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, First BanCorp shares have gained 6.2% over the past six months against the industry’s 5.5% decline.
Image Source: Zacks Investment Research
Some other factors mentioned below make First BanCorp stock a solid pick right now.
Earnings Growth: In the last three to five years, the company witnessed earnings growth of 33.9%, higher than the industry average of 7.3%. The uptrend is expected to continue in the near term, with the company’s earnings projected to grow 3.5% in 2024 and 6.2% in 2025.
Its long-term (three-five years) projected EPS growth rate of 6.9% offers rewards for shareholders.
Further, FBP has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 17.1%.
Revenue Strength: First BanCorp’s revenues witnessed a compound annual growth rate of 8.9% over the last five years (2018-2023). While revenues declined in the first quarter of 2024, the trend will likely reverse in the future. In 2024 and 2025, the company’s revenues are projected to increase 0.1% and 1.6%, respectively.
Superior Return on Equity (ROE): FBP’s ROE of 21.58% is higher than the industry average of 9.41%. This shows that the company reinvests its cash more efficiently than its peers.
Favorable Valuation: The FBP stock looks undervalued right now when compared with the broader industry. It has a PEG ratio of 1.48, lower than the industry average of 2.11. Also, its P/E (F1) ratio of 10.21 compares favorably with the industry average of 10.85.
Moreover, First BanCorp has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score, helping investors steer clear of 'value traps' and identify stocks that are truly trading at a discount. 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.
The consensus estimate for FCBC’s current year’s earnings has been revised 8.8% upward over the past 60 days. Over the past year, FCBC’s share price has increased 17.8%.
OBK’s current-year earnings estimates have been revised 2.3% upward over the past 60 days. OBK shares have gained 1% over the past year.
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4 Reasons to Invest in First BanCorp (FBP) Stock Right Now
It seems to be a wise idea to add the First BanCorp. (FBP - Free Report) stock to your portfolio now. Supported by the high interest rate environment and decent loan growth, the company is well-poised for top-line expansion.
Moreover, analysts are optimistic regarding the company’s earnings growth potential. The Zacks Consensus Estimate for FBP’s 2024 earnings has been revised 4.7% upward over the past 60 days. The stock currently carries a Zacks Rank #2 (Buy).
Looking at its price performance, First BanCorp shares have gained 6.2% over the past six months against the industry’s 5.5% decline.
Image Source: Zacks Investment Research
Some other factors mentioned below make First BanCorp stock a solid pick right now.
Earnings Growth: In the last three to five years, the company witnessed earnings growth of 33.9%, higher than the industry average of 7.3%. The uptrend is expected to continue in the near term, with the company’s earnings projected to grow 3.5% in 2024 and 6.2% in 2025.
Its long-term (three-five years) projected EPS growth rate of 6.9% offers rewards for shareholders.
Further, FBP has an impressive earnings surprise history. The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being 17.1%.
Revenue Strength: First BanCorp’s revenues witnessed a compound annual growth rate of 8.9% over the last five years (2018-2023). While revenues declined in the first quarter of 2024, the trend will likely reverse in the future. In 2024 and 2025, the company’s revenues are projected to increase 0.1% and 1.6%, respectively.
Superior Return on Equity (ROE): FBP’s ROE of 21.58% is higher than the industry average of 9.41%. This shows that the company reinvests its cash more efficiently than its peers.
Favorable Valuation: The FBP stock looks undervalued right now when compared with the broader industry. It has a PEG ratio of 1.48, lower than the industry average of 2.11. Also, its P/E (F1) ratio of 10.21 compares favorably with the industry average of 10.85.
Moreover, First BanCorp has a Value Score of B. The Value Style Score condenses all valuation metrics into one actionable score, helping investors steer clear of 'value traps' and identify stocks that are truly trading at a discount. 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 Stocks Worth Considering
A couple of other top-ranked stocks from the same space are First Community Bankshares, Inc. (FCBC - Free Report) and Origin Bancorp, Inc. (OBK - Free Report) . Currently, FCBC sports a Zacks Rank #1 and OBK carries a Zacks Rank of 2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for FCBC’s current year’s earnings has been revised 8.8% upward over the past 60 days. Over the past year, FCBC’s share price has increased 17.8%.
OBK’s current-year earnings estimates have been revised 2.3% upward over the past 60 days. OBK shares have gained 1% over the past year.