Company Overview - Enterprise Financial Services (EFSC) is based in Clayton and operates in the Finance sector, with shares experiencing a price change of -18.09% this year [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.51%, which is lower than the Banks - Midwest industry's yield of 3.47% and the S&P 500's yield of 1.68% [3] Dividend Performance - EFSC's current annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the past 5 years, the company has raised its dividend 3 times year-over-year, achieving an average annual increase of 11.56% [4] - The current payout ratio for EFSC is 23%, indicating that the company paid out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for EFSC's earnings per share for 2025 is $4.93, reflecting a year-over-year growth rate of 1.02% [5] Investment Considerations - EFSC is considered a compelling investment opportunity due to its strong dividend profile and current Zacks Rank of 3 (Hold) [7] - The company is positioned as a strong dividend play, appealing to income investors despite the general trend of high-yielding stocks struggling during periods of rising interest rates [7]

Group 1: Company Overview - Enterprise Financial Services (EFSC) is a financial holding company headquartered in Clayton, with a year-to-date price change of -1.38% [3] - The company currently pays a dividend of $0.29 per share, resulting in a dividend yield of 2.09%, which is lower than the Banks - Midwest industry's yield of 3.24% and the S&P 500's yield of 1.56% [3] Group 2: Dividend Performance - EFSC's annualized dividend of $1.16 has increased by 9.4% from the previous year [4] - Over the last five years, the company has raised its dividend five times, achieving an average annual increase of 11.14% [4] - The current payout ratio for EFSC is 23%, indicating that the company pays out 23% of its trailing 12-month earnings per share as dividends [4] Group 3: Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate for EFSC's earnings is projected at $4.93 per share, reflecting a year-over-year growth rate of 1.02% [5] Group 4: Investment Considerations - EFSC is considered an attractive investment opportunity due to its dividend offerings and a strong Zacks Rank of 1 (Strong Buy) [7]

Group 1: Stock Highlights - Reddit, Inc. (RDDT) has a Zacks Rank 1 with a 73.1% increase in the consensus estimate for current year earnings over the last 60 days [1] - GBank Financial Holdings Inc. (GBFH) also holds a Zacks Rank 1, with a 7.1% increase in the consensus estimate for current year earnings over the last 60 days [2] - Enterprise Financial Services Corp (EFSC) maintains a Zacks Rank 1, with an 8.1% increase in the consensus estimate for current year earnings over the last 60 days [3] Group 2: Stock Performance - Reddit's shares have gained 87.8% over the last six months, significantly outperforming the S&P 500's advance of 0.2% [1] - GBank's shares increased by 2.4% over the last three months, while the S&P 500 declined by 4.5% [2] - Enterprise Financial's shares rose by 11% over the last six months, compared to the S&P 500's advance of 0.2% [3] Group 3: Momentum Scores - Reddit possesses a Momentum Score of A, indicating strong momentum characteristics [1] - GBank has a Momentum Score of B, reflecting moderate momentum [2] - Enterprise Financial also holds a Momentum Score of B, suggesting similar moderate momentum [3]

Group 1: Stocks Added to Zacks Rank 1 (Strong Buy) List - Tokio Marine (TKOMY) has seen a 17.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - PRA Group (PRAA) has experienced a 12.4% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Enterprise Financial Services (EFSC) has recorded a 9.2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [3] - National Fuel Gas Company (NFG) has seen a 7.3% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [4] - Urban Outfitters (URBN) has experienced a 7.1% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [5]

Core Viewpoint - Enterprise Financial Services (EFSC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Revisions - The Zacks Consensus Estimate for EFSC indicates expected earnings of $4.98 per share for the fiscal year ending December 2025, reflecting a year-over-year increase of 2.1% [9]. - Over the past three months, analysts have raised their earnings estimates for EFSC by 9.6%, showcasing a positive trend in earnings outlook [9]. Zacks Rating System - The Zacks rating system is based solely on changes in a company's earnings picture, with a strong correlation between earnings estimate revisions and stock price movements [2][5]. - The Zacks Rank system classifies stocks into five groups, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - EFSC's upgrade to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11].

Financial Performance and Strategy - The company was awarded $60.0 million and $50.0 million in New Markets Tax Credit allocations for 2023 and 2024, respectively, bringing the total allocations to $353.0 million[27]. - The company focuses on specialized lending niches, including SBA 7(a) loans, life insurance premium finance, and tax credit related lending, which enhances its competitive advantage[26]. - The efficiency ratio, which measures noninterest expense divided by total revenue, is a key metric for the company's expense management strategy[31]. - The company emphasizes a relationship-driven growth strategy, targeting privately-held businesses and their owner families[23]. - The company maintains a disciplined approach to acquisitions, which has significantly contributed to its growth and expansion[31]. - The company offers a broad range of treasury management products and services, generating significant fee income[28]. - The company operates in highly competitive markets, facing competition from various financial institutions and fintech companies[32]. Regulatory Compliance and Capital Requirements - The company has more than $10 billion in assets, making it subject to examination by the Consumer Financial Protection Bureau (CFPB)[34]. - The company is subject to regulation and supervision by the Federal Reserve and the FDIC, ensuring compliance with banking regulations[33]. - The Company is required to maintain a Common Equity Tier 1 (CET1) capital ratio of 7.0% to avoid restrictions on capital distributions[59]. - All of the Bank's capital ratios were at levels that qualify it to be "well-capitalized" for regulatory purposes as of December 31, 2024[62]. - The Company must continue to be considered well-managed and well-capitalized by the Federal Reserve to remain a financial holding company[40]. - The Federal Reserve requires prior approval for the Company to acquire substantially all the assets of any bank or to merge with another bank holding company[41]. - The Company is subject to capital requirements established by the Federal Reserve, which are applied on a consolidated basis[45]. - The Dodd-Frank Act requires bank holding companies to serve as a source of strength for their subsidiary depository institutions[44]. - The Bank is subject to extensive federal and state regulatory oversight, including capital adequacy standards set by the FDIC[54]. - The Bank's payment of dividends is subject to statutory and regulatory limitations, including the requirement to maintain capital above regulatory guidelines[71]. Consumer Protection and Compliance - The CFPB has broad rule-making authority that may significantly impact consumer mortgage lending and servicing, particularly with new regulations on mortgage origination standards[66]. - The Bank is subject to various consumer protection laws, including the Truth in Lending Act and the Fair Credit Reporting Act, which mandate disclosure requirements and regulate customer interactions[67]. - The USA PATRIOT Act requires the establishment of an anti-money laundering program and due diligence policies for financial institutions[79]. - The proposed rule by FinCEN in June 2024 aims to amend AML/CFT program requirements, including risk assessment processes for financial institutions[78]. - The FDIC's proposed rulemaking in September 2023 aims to establish standards for corporate governance and risk management for banks with total consolidated assets of $10 billion or more[84]. Employee and Workplace Policies - As of December 31, 2024, the company employed 1,218 regular full-time and 38 part-time associates[87]. - Approximately 67% of associates are eligible for the Short Term Incentive Plan (STIP), which aligns compensation with performance[90]. - The company's minimum wage is set at $17 per hour, ensuring all associates earn above this threshold[91]. - The company has been recognized as one of the "Best Banks to Work for" for seven consecutive years, ranking fourth among similar financial institutions in 2024[93]. - The company offers a comprehensive benefits package, including 401(k), paid time off, and wellness programs[92]. - The Career Acceleration Program provides training in credit and commercial banking, with successful participants placed in roles that match their strengths[98]. - The company emphasizes a safe and healthy workplace, adhering to local, state, and federal safety regulations[96]. - The Belonging & Inclusion Council aims to foster an inclusive environment and improve diversity within the workforce[95]. - The company conducts annual talent reviews to identify high-performing associates and future leaders[88]. - The company regularly compares compensation and benefits with peer companies to maintain competitiveness[89].

Core Insights - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, capitalizing on established price movements [1] - Enterprise Financial Services (EFSC) currently holds a Momentum Style Score of B, indicating strong potential based on price changes and earnings estimate revisions [2][8] - EFSC has a Zacks Rank of 1 (Strong Buy), suggesting it is expected to outperform the market in the near term [3] Performance Metrics - EFSC shares have increased by 0.97% over the past week, outperforming the Zacks Banks - Midwest industry, which rose by 0.22% [5] - Over the last month, EFSC's price change is 9.8%, compared to the industry's 8.08% [5] - In the last quarter, EFSC shares rose by 2.34%, and over the past year, they have gained 47.08%, while the S&P 500 increased by only 1.46% and 22.19%, respectively [6] Trading Volume - The average 20-day trading volume for EFSC is 146,000 shares, which serves as a bullish indicator when combined with rising stock prices [7] Earnings Estimates - In the past two months, three earnings estimates for EFSC have been revised upwards, increasing the consensus estimate from $4.54 to $4.84 [9] - For the next fiscal year, two estimates have also moved higher, with no downward revisions during the same period [9] Conclusion - Given the strong performance metrics and positive earnings outlook, EFSC is positioned as a 1 (Strong Buy) stock with a Momentum Score of B, making it a compelling investment option [11]

Core Viewpoint - Investors are encouraged to consider Enterprise Financial Services (EFSC) due to improving earnings estimates and positive stock momentum [1][7] Estimate Revisions - There is a rising trend in earnings estimate revisions driven by analyst optimism, which is expected to positively impact the stock price [2] - The earnings estimate for the current quarter is $1.14 per share, reflecting a +6.54% change from the previous year, with a recent increase of 8.68% in consensus estimates over the last 30 days [4] - For the full year, the expected earnings are $4.84 per share, showing a -0.82% change from the prior year, but consensus estimates have risen by 6.03% due to three upward revisions [5] Zacks Rank - Enterprise Financial Services holds a Zacks Rank 1 (Strong Buy), indicating strong agreement among analysts in raising earnings estimates, which historically correlates with stock outperformance [3][6] - Stocks with Zacks Rank 1 and 2 have shown significant outperformance compared to the S&P 500 [6] Stock Performance - The stock has gained 8.4% over the past four weeks, reflecting investor confidence in its earnings growth prospects [7]

Core Viewpoint - Enterprise Financial Services (EFSC) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][4]. Earnings Estimates and Ratings - The Zacks rating system is based solely on a company's changing earnings picture, tracking the Zacks Consensus Estimate for EPS from sell-side analysts [2]. - The Zacks rating upgrade for EFSC reflects an improvement in the company's earnings outlook, which is expected to positively impact its stock price [4][6]. Impact of Earnings Estimate Revisions - There is a strong correlation between changes in earnings estimates and near-term stock price movements, making the Zacks rating system valuable for investors [3][7]. - Rising earnings estimates for EFSC indicate an improvement in the company's underlying business, which should lead to higher stock prices as investors recognize this trend [6]. Zacks Rank System Performance - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [8]. - The upgrade of EFSC to Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting potential for market-beating returns in the near term [11]. Earnings Estimate Data for EFSC - EFSC is projected to earn $4.84 per share for the fiscal year ending December 2025, reflecting a year-over-year change of -0.8%. However, the Zacks Consensus Estimate has increased by 6.6% over the past three months [9].

Core Insights - Three stocks are highlighted with strong momentum characteristics and a buy rank, including Moelis & Company, Society Pass Incorporated, and Enterprise Financial Services Corp [1][2][3] Company Summaries - **Moelis & Company (MC)**: - Zacks Rank 1 - Current year earnings estimate increased by 8.3% over the last 60 days - Shares gained 17.2% over the last three months, outperforming the S&P 500's 6.0% increase - Momentum Score of A [1] - **Society Pass Incorporated (SOPA)**: - Zacks Rank 1 - Current year earnings estimate increased by 6.7% over the last 60 days - Shares gained 9.6% over the last month, compared to the S&P 500's 3.3% increase - Momentum Score of B [2] - **Enterprise Financial Services Corp (EFSC)**: - Zacks Rank 1 - Current year earnings estimate increased by 7.5% over the last 60 days - Shares gained 14.6% over the last three months, outperforming the S&P 500's 6.0% increase - Momentum Score of A [3]