It seems to be a wise idea to invest in First Financial Bankshares FFIN stock right now. The company is well poised for revenue growth, driven by continued improvement in loans and deposits. Moreover, it has a solid balance sheet position.
Further, the company’s earnings estimates have remained stable over the past 30 days despite gradual adverse change in operating backdrop. It currently carries a Zacks Rank #2 (Buy).
Moreover, the stock has been performing well. So far this year, shares of First Financial have rallied 6.8%, outperforming rise of 3.8% for the industry it belongs to.
What Makes First Financial a Solid Pick
Revenue strength: First Financial has been witnessing consistent improvement in revenues, driven by growth in loans and deposit balances. Over the last six years (ended 2018), total revenues recorded a compound annual growth rate (CAGR) of 10.6%.
Moreover, backed by strong balance sheet and liquidity position, the company is expected to be able to undertake inorganic expansion moves. Last year, it acquired Kingwood, TX-based Commercial State Bank, which helped boost its non-interest revenues.
Notably, the company’s revenues are projected to grow 5.1% in 2019 and 6.2% in 2020.
Earnings growth: First Financial recorded earnings growth of 9.9% over the past three to five years. This momentum is likely to continue in the near term, as reflected by the company’s projected earnings growth rate of 9.2% and 5.2% for 2019 and 2020, respectively.
Superior Return on Equity (ROE): First Financial has a ROE of 15.03% compared with the industry average of 10.48%. This indicates the company’s superiority in utilizing shareholders’ funds.
Strong leverage: First Financial’s debt/equity ratio is nil against the industry average of 0.47. The relatively strong financial health of the company will likely help it perform better than its peers in a dynamic business environment.
Other Stocks Worth Considering
The Bancorp, Inc. TBBK currently sports a Zacks Rank #1 (Strong Buy). The company’s 2019 earnings estimates have moved 6.7% upward over the past 60 days. Its shares have rallied 12.1% so far this year.
The Zacks Consensus Estimate for earnings for Hilltop Holdings Inc. HTH has increased 6.4% over the past 60 days. Its shares have gained 19.7% so far this year. The stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
OFG Bancorp’s OFG earnings estimates for the current year have remained stable over the past 60 days. Its shares have surged 43.3% year to date. The stock presently has a Zacks Rank #1.
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The Bancorp, Inc. (TBBK) : Free Stock Analysis Report
OFG Bancorp (OFG) : Free Stock Analysis Report
First Financial Bankshares, Inc. (FFIN) : Free Stock Analysis Report
Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report
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