4 Reasons to Invest in HomeTrust Bancshares (HTBI) Stock Now
HomeTrust Bancshares, Inc. HTBI remains on track for revenue growth prospects with the help of the rise in loan balance. Moreover, its inorganic growth efforts bode well for the future. Its substantial capital deployment activities are likely to enhance shareholder value. This makes the stock a lucrative investment pick, despite near-term headwinds.
The Zacks Consensus Estimate for HomeTrust Bancshares' fiscal 2023 and fiscal 2024 earnings has been revised to 7.7% and 5% upward, respectively, over the past 60 days. This shows that analysts are optimistic regarding the company’s growth prospects. HTBI currently sports a Zacks Rank #1 (Strong Buy).
Over the past six months, shares of the company have fallen 7.2% compared with the industry's decline of 9.8%.
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Mentioned below are a few factors that make HTBI stock a rewarding investment pick now:
Earnings Growth: HomeTrust Bancshares witnessed earnings growth of 14.3% in the past three to five years, which is higher than the industry average of 12%. The uptrend is expected to continue in the near term. The company’s earnings are projected to rise 37.7% for fiscal 2023 and 8.5% for fiscal 2024.
HTBI has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters, with the average surprise being 2.72%.
Revenue Growth: HomeTrust Bancshares’ net revenues witnessed a compound annual growth rate of 5.6% over the last three years (2020-2022) with the trend continuing in the first quarter of 2023. The improvement was backed by a strong loan balance and higher interest rates. Revenues are expected to grow 26.7% in 2023 and 7.9% in 2024.
Strategic Expansion Initiatives: HomeTrust Bancshares has expanded inorganically, which bodes well for the future. In February 2023, it merged with Quantum Capital Corp., a Georgia corporation. These, along with other strategic expansion activities such as opening new branches over the years, are expected to continue helping the company to diversify its revenues.
Steady Capital Deployments: HomeTrust Bancshares pays quarterly dividends on a regular basis as its capital deployments are sustainable on a solid liquidity position. On Apr 26, HTBI announced a quarterly dividend of 10 cents per share. The company increased its quarterly dividend four times in the last five years. Currently, the stock has an annualized dividend yield of 1.81%, considering the last day’s closing price of $22.95.
Other Bank Stocks Worth a Look
A couple of other top-ranked stocks from the banking space are BNP Paribas BNPQY and First Citizens BancShares FCNCA.
The Zacks Consensus Estimate for BNP Paribas’ current-year earnings has been revised 13.3% upward over the past 30 days. Its shares have gained 10% in the past six months. Currently, BNPQY carries a Zacks Rank #2 (Buy).
First Citizens BancShares sports a Zacks Rank #1 at present. Its earnings estimates for 2023 have been revised 67.2% upward over the past 30 days. In the past six months, FCNCA shares have rallied 64.2%. You can see the complete list of today’s Zacks #1 Rank stocks here.
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First Citizens BancShares, Inc. (FCNCA) : Free Stock Analysis Report
BNP Paribas SA (BNPQY) : Free Stock Analysis Report
HomeTrust Bancshares, Inc. (HTBI) : Free Stock Analysis Report
