Dj Dir Adams Gifts 1044 Of Home Bancshares Inc >Homb

What Happened?

A number of stocks jumped in the afternoon session after comments from a key Federal Reserve official boosted hopes for an interest rate cut. New York Federal Reserve President John Williams stated he sees “room for a further adjustment” in the near term, sparking a significant market rally. Following his remarks, the probability of the central bank cutting rates at its December meeting jumped from 39% to over 73%, according to the CME FedWatch tool. This positive sentiment provided relief to markets amid concerns over high valuations, particularly in AI-related stocks.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Regional Banks company Pathward Financial jumped 4%. Is now the time to buy Pathward Financial? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Lake City Bank jumped 4.2%. Is now the time to buy Lake City Bank? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company Home Bancshares jumped 4.1%. Is now the time to buy Home Bancshares? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company First Financial Bancorp jumped 4.1%. Is now the time to buy First Financial Bancorp? Access our full analysis report here, it’s free for active Edge members.
• Regional Banks company FB Financial jumped 4.1%. Is now the time to buy FB Financial? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Lake City Bank (LKFN)

Lake City Bank’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 3 months ago when the stock dropped 6.1% on the news that the stock pulled back in an apparent reversal of a rally from the previous session. The decline appears to be a reversal of gains from the previous trading session when the stock jumped 5.3%. That rally was part of a broader surge among regional banks, sparked by dovish comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Powell's remarks suggested that moderating inflation could lead to potential interest rate cuts, which eased concerns about prolonged high borrowing costs for banks. The pullback suggests that after the initial optimism, investors may be taking profits and reassessing the sector's near-term outlook following the sharp run-up.

Lake City Bank is down 12.5% since the beginning of the year, and at $58.88 per share, it is trading 22.4% below its 52-week high of $75.85 from November 2024. Investors who bought $1,000 worth of Lake City Bank’s shares 5 years ago would now be looking at an investment worth $1,094.

Over the last six months, Home Bancshares’s shares have sunk to $27.16, producing a disappointing 7% loss - a stark contrast to the S&P 500’s 16.3% gain. This may have investors wondering how to approach the situation.

Following the drawdown, is now an opportune time to buy HOMB? Find out in our full research report, it’s free for active Edge members.

Why Does Home Bancshares Spark Debate?

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Two Things to Like:

1. Skyrocketing Revenue Shows Strong Momentum

Net interest income and and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.

Luckily, Home Bancshares’s revenue grew at an impressive 9.4% compounded annual growth rate over the last five years. Its growth beat the average banking company and shows its offerings resonate with customers.

2. EPS Moving Up Steadily

We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.

Home Bancshares’s EPS grew at a decent 5.8% compounded annual growth rate over the last five years. This performance was better than most banking businesses.

One Reason to be Careful:

Projected Net Interest Income Growth Is Slim

Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.

Over the next 12 months, sell-side analysts expect Home Bancshares’s net interest income to rise by 3.5%, close to its 2.2% annualized growth for the past two years.

Final Judgment

Home Bancshares’s positive characteristics outweigh the negatives. With the recent decline, the stock trades at 1.3× forward P/B (or $27.16 per share). Is now the right time to buy? See for yourself in our in-depth research report, it’s free for active Edge members.

High-Quality Stocks for All Market Conditions

The market’s up big this year - but there’s a catch. Just 4 stocks account for half the S&P 500’s entire gain. That kind of concentration makes investors nervous, and for good reason. While everyone piles into the same crowded names, smart investors are hunting quality where no one’s looking - and paying a fraction of the price. Check out the high-quality names we’ve flagged in our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).

Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return).

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Looking back on regional banks stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Peoples Bancorp and its peers.

Regional banks, financial institutions operating within specific geographic areas, serve as intermediaries between local depositors and borrowers. They benefit from rising interest rates that improve net interest margins (the difference between loan yields and deposit costs), digital transformation reducing operational expenses, and local economic growth driving loan demand. However, these banks face headwinds from fintech competition, deposit outflows to higher-yielding alternatives, credit deterioration (increasing loan defaults) during economic slowdowns, and regulatory compliance costs. Recent concerns about regional bank stability following high-profile failures and significant commercial real estate exposure present additional challenges.

The 94 regional banks stocks we track reported a satisfactory Q3. As a group, revenues missed analysts’ consensus estimates by 1.1%.

In light of this news, share prices of the companies have held steady as they are up 1.4% on average since the latest earnings results.

Peoples Bancorp

Founded in 1902 in Ohio and expanding through both organic growth and acquisitions, Peoples Bancorp is a financial holding company that provides banking, insurance, equipment leasing, and investment services to consumers and businesses.

Peoples Bancorp reported revenues of $118.5 million, up 3.2% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a strong quarter for the company with a solid beat of analysts’ tangible book value per share estimates and a beat of analysts’ EPS estimates.

"We continued to experience high loan growth and had improvements in several key financial metrics during the third quarter" said Tyler Wilcox, President and Chief Executive Officer.

Interestingly, the stock is up 1.5% since reporting and currently trades at $29.11.

Is now the time to buy Peoples Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Customers Bancorp

Originally founded with a "high-tech, high-touch" branch-light banking strategy, Customers Bancorp is a bank holding company that provides commercial and consumer banking services through its Customers Bank subsidiary, with a focus on business lending and digital banking.

Customers Bancorp reported revenues of $232.1 million, up 38.5% year on year, outperforming analysts’ expectations by 7%. The business had a stunning quarter with an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ revenue estimates.

The market seems content with the results as the stock is up 3% since reporting. It currently trades at $67.53.

Is now the time to buy Customers Bancorp? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: The Bancorp

Operating behind the scenes of many popular fintech apps and prepaid cards you might use daily, The Bancorp is a bank holding company that specializes in providing banking services to fintech companies and offering specialty lending products.

The Bancorp reported revenues of $174.6 million, up 38.8% year on year, falling short of analysts’ expectations by 10%. It was a disappointing quarter as it posted a significant miss of analysts’ revenue and net interest income estimates.

As expected, the stock is down 16% since the results and currently trades at $64.75.

Read our full analysis of The Bancorp’s results here.

Independent Bank

Tracing its roots back to 1907 and serving as a financial cornerstone in New England for over a century, Independent Bank Corp. operates as the holding company for Rockland Trust, providing banking, investment, and financial services across Eastern Massachusetts and Rhode Island.

Independent Bank reported revenues of $243.7 million, up 39.1% year on year. This result met analysts’ expectations. It was a strong quarter as it also put up an impressive beat of analysts’ net interest income estimates and a solid beat of analysts’ tangible book value per share estimates.

The stock is up 8.7% since reporting and currently trades at $70.14.

Read our full, actionable report on Independent Bank here, it’s free for active Edge members.

Home Bancshares

Founded in Conway, Arkansas in 1998 and growing through strategic acquisitions across the Southeast, Home Bancshares operates as the bank holding company for Centennial Bank, providing commercial and retail banking services to businesses and individuals across multiple states.

Home Bancshares reported revenues of $277.7 million, up 7.6% year on year. This number beat analysts’ expectations by 3.5%. Zooming out, it was a satisfactory quarter as it also logged a solid beat of analysts’ revenue estimates but a narrow beat of analysts’ EPS estimates.

The stock is flat since reporting and currently trades at $27.58.

Read our full, actionable report on Home Bancshares here, it’s free for active Edge members.

Market Update

Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.