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Earnings Estimates Rise for Enterprise Financial Services (EFSC): Will It Win?
Enterprise Financial Services (EFSC) could be a solid pick for investors given the company’s notably improving earnings outlook. While the stock has been performing strongly lately, that trend could continue as analysts are still increasing their earnings estimates for the company.
The upward trend in estimate revisions for this financial holding company reflects analysts’ growing optimism about its earnings outlook, which should be reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Our stock rating tool — the Zacks Rank — has this insight at its core.
The five-level Zacks Rank system, which ranges from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with Zacks #1-ranked stocks generating an average annual return of +25% since 2008.
For Enterprise Financial Services, there was strong agreement among covering analysts to raise earnings estimates, which helped significantly lift consensus estimates for the next quarter and full year.
The chart below shows the evolution of the Zacks Consensus EPS estimate for 12 months:
12-month EPS
Current Quarter Estimate Revisions
The $1.14 earnings per share estimate for the current quarter represents a -2.56% change from the number reported a year ago.
The Zacks Consensus Estimate for Corporate Financial Services has moved 11.04% higher over the past 30 days as three estimates moved higher versus no negative revisions.
Current year estimate revisions
For the full year, the earnings estimate of $4.60 per share represents a -10.16% change from the prior year’s number.
The revision trend for the current year also looks quite promising for Enterprise Financial Services, with four estimates moving up in the last month compared to no negative revisions. The consensus estimate also received a boost in this period, increasing by 6.43%.
Favorable Zacks Rank
Promising estimate revisions have helped Enterprise Financial Services earn a Zacks Rank #2 (Buy). The Zacks Rank is a tried-and-tested rating tool that helps investors effectively harness the power of earnings estimate revisions and make the right investment decision. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Our research shows that stocks with Zacks Rank #1 (Strong Buy) and 2 (Buy) significantly outperform the S&P 500.
Conclusion
Enterprise Financial Services stock is up 32% over the past four weeks, suggesting investors are buying into its impressive estimate revisions. So you might consider adding it to your portfolio right away to benefit from its earnings growth prospects.
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Enterprise Financial Services Corporation (EFSC): Free Stock Analysis Report