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Shares of Citizens Community Bancorp (CZWI) have been strong performers lately, with the stock up 9.6% over the past month. The stock hit a new 52-week high of $13.48 in the previous session. Citizens Community Bancorp has gained 14.8% since the start of the year compared to the 12.5% move for the Zacks Finance sector and the 26% return for the Zacks Financial - Savings and Loan industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 28, 2021, Citizens Community Bancorp, Inc. reported EPS of $0.33 versus consensus estimate of $0.29 while it beat the consensus revenue estimate by 11.99%.
For the current fiscal year, Citizens Community Bancorp, Inc. is expected to post earnings of $1.27 per share on $64.75 million in revenues. This represents a 14.41% change in EPS on a -5.75% change in revenues. For the next fiscal year, the company is expected to earn $0.98 per share on $60.6 million in revenues. This represents a year-over-year change of -22.83% and -6.41%, respectively.
Citizens Community Bancorp, Inc. may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.
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.
Citizens Community Bancorp, Inc. has a Value Score of A. The stock's Growth and Momentum Scores are D and A, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.8X current fiscal year EPS estimates. On a trailing cash flow basis, the stock currently trades at 7.5X versus its peer group's average of 11.7X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Citizens Community Bancorp, Inc. currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Citizens Community Bancorp, Inc. meets the list of requirements. Thus, it seems as though Citizens Community Bancorp, Inc. shares could have potential in the weeks and months to come.
How Does Citizens Community Bancorp, Inc. Stack Up to the Competition?
Shares of Citizens Community Bancorp, Inc. have been rising, and the company still appears to be a decent choice, but what about the rest of the industry? Some of its industry peers are also looking good, including Home Bancorp (HBCP), Hilltop Holdings (HTH), and TCF Financial (TCF), all of which currently have a Zacks Rank of at least #2 and a VGM Score of at least B, making them well-rounded choices.
The Zacks Industry Rank is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for Citizens Community Bancorp, Inc.even beyond its own solid fundamental situation.
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Citizens Community Bancorp, Inc. (CZWI) : Free Stock Analysis Report
Hilltop Holdings Inc. (HTH) : Free Stock Analysis Report
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