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First BanCorp (FBP) Soars to a 52-Week High, Time to Cash Out?
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Have you been paying attention to shares of First BanCorp. (FBP - Free Report) ? Shares have been on the move with the stock up 13.6% over the past month. FBP hit a new 52-week high of $7.68 in the previous session. First BanCorp. has gained 49.4% since the start of the year compared to the -0.3% move for the Finance sector and the 7.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great 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 27, 2018, First BanCorp. reported EPS of $0.14 versus the Zacks Consensus Estimate of $0.09.
For the current fiscal year, First BanCorp. is expected to post earnings of $0.57 per share on $607.1 million in revenues. This represents a 14% change in EPS on a 9.6% change in revenues. For the next fiscal year, the company is expected to earn $0.62 per share on $621.6 million in revenues. This represents a year-over-year change of 7.89% and 2.39%, respectively.
Valuation Metrics
First BanCorp. may be at a 52-week high right now, but what might the future hold for FBP? 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). 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
First BanCorp. has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.3X versus its peer group's average of 15.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
We also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, First BanCorp. 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 and Style Scores of A or B, it looks as if First BanCorp. passes the test. Thus, it seems as though FBP shares could have a bit more room to run in the near term.
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First BanCorp (FBP) Soars to a 52-Week High, Time to Cash Out?
Have you been paying attention to shares of First BanCorp. (FBP - Free Report) ? Shares have been on the move with the stock up 13.6% over the past month. FBP hit a new 52-week high of $7.68 in the previous session. First BanCorp. has gained 49.4% since the start of the year compared to the -0.3% move for the Finance sector and the 7.5% year-to-date return for its peer group.
What's Driving the Outperformance?
The stock has a great 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 27, 2018, First BanCorp. reported EPS of $0.14 versus the Zacks Consensus Estimate of $0.09.
For the current fiscal year, First BanCorp. is expected to post earnings of $0.57 per share on $607.1 million in revenues. This represents a 14% change in EPS on a 9.6% change in revenues. For the next fiscal year, the company is expected to earn $0.62 per share on $621.6 million in revenues. This represents a year-over-year change of 7.89% and 2.39%, respectively.
Valuation Metrics
First BanCorp. may be at a 52-week high right now, but what might the future hold for FBP? 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). 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. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.
First BanCorp. has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 13.4X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 13.3X versus its peer group's average of 15.9X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
First BanCorp. Price and Consensus
First BanCorp. Price and Consensus | First BanCorp. Quote
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, First BanCorp. 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 and Style Scores of A or B, it looks as if First BanCorp. passes the test. Thus, it seems as though FBP shares could have a bit more room to run in the near term.