Trade-Ideas: Home BancShares (HOMB) Is Today's New Lifetime High Stock

Trade-Ideas LLC identified Home BancShares (HOMB) as a new lifetime high candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Home BancShares

(

HOMB

) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Home BancShares as such a stock due to the following factors:

  • HOMB has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.2 million.
  • HOMB has traded 15,379 shares today.
  • HOMB is trading at a new lifetime high.

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More details on HOMB:

Home BancShares, Inc. operates as a bank holding company for Centennial Bank that provides commercial and retail banking, and related financial services to businesses, real estate developers and investors, individuals, and municipalities. The stock currently has a dividend yield of 1.4%. HOMB has a PE ratio of 23. Currently there are 3 analysts that rate Home BancShares a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Home BancShares has been 226,100 shares per day over the past 30 days. Home BancShares has a market cap of $3.0 billion and is part of the financial sector and banking industry. The stock has a beta of 1.13 and a short float of 4.4% with 8.89 days to cover. Shares are up 43% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Home BancShares as a

buy

. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, notable return on equity and solid stock price performance. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.

Highlights from the ratings report include:

  • The revenue growth came in higher than the industry average of 0.4%. Since the same quarter one year prior, revenues rose by 20.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • HOME BANCSHARES INC has improved earnings per share by 26.8% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, HOME BANCSHARES INC increased its bottom line by earning $1.70 versus $1.14 in the prior year. This year, the market expects an improvement in earnings ($2.04 versus $1.70).
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly outperformed against the S&P 500 and exceeded that of the Commercial Banks industry average. The net income increased by 30.6% when compared to the same quarter one year prior, rising from $27.37 million to $35.74 million.
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Commercial Banks industry and the overall market on the basis of return on equity, HOME BANCSHARES INC has outperformed in comparison with the industry average, but has underperformed when compared to that of the S&P 500.
  • Powered by its strong earnings growth of 26.82% and other important driving factors, this stock has surged by 38.77% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.

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