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

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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 $7.9 million.
  • HOMB has traded 220,141 shares today.
  • HOMB is trading at a new lifetime high.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in HOMB with the Ticky from Trade-Ideas. See the FREE profile for HOMB NOW at Trade-Ideas

More details on HOMB:

Home Bancshares, Inc. operates as the 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%. HOMB has a PE ratio of 24.7. Currently there are 2 analysts that rate Home BancShares a buy, no analysts rate it a sell, and 4 rate it a hold.

The average volume for Home BancShares has been 166,900 shares per day over the past 30 days. Home BancShares has a market cap of $1.7 billion and is part of the financial sector and banking industry. Shares are up 81% year to date as of the close of trading on Monday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

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, growth in earnings per share, increase in net income, expanding profit margins and good cash flow from operations. We feel these 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:
  • HOMB's revenue growth has slightly outpaced the industry average of 4.0%. Since the same quarter one year prior, revenues slightly increased by 3.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • HOME BANCSHARES INC has improved earnings per share by 12.7% 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 $1.12 versus $0.93 in the prior year. This year, the market expects an improvement in earnings ($1.30 versus $1.12).
  • The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Commercial Banks industry average. The net income increased by 14.0% when compared to the same quarter one year prior, going from $15.49 million to $17.66 million.
  • The gross profit margin for HOME BANCSHARES INC is currently very high, coming in at 92.93%. It has increased from the same quarter the previous year. Along with this, the net profit margin of 30.50% significantly outperformed against the industry average.
  • Net operating cash flow has significantly increased by 272.04% to $41.29 million when compared to the same quarter last year. In addition, HOME BANCSHARES INC has also vastly surpassed the industry average cash flow growth rate of 29.12%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

null

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%