The proven Zacks Rank system focuses on earnings estimates and estimate revisions to find winning stocks. Nevertheless, we know that our readers all have their own perspectives, so we are always looking at the latest trends in value, growth, and momentum to find strong picks.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value investors use fundamental analysis and traditional valuation m ...

Core Insights - UMB Financial has seen significant increases in institutional ownership, with several hedge funds raising their stakes substantially in recent quarters, indicating strong investor confidence in the company [1][6] - The company's stock performance shows a market capitalization of $9.78 billion, with a price-to-earnings ratio of 14.10 and a price-to-earnings-growth ratio of 0.93, suggesting a potentially attractive valuation [2] - UMB Financial reported a quarterly earnings per share (EPS) of $3.08, exceeding analyst expectations, and demonstrated a year-over-year revenue growth of 66.0% [3] Institutional Ownership - Farther Finance Advisors LLC increased its stake by 219.2%, owning 249 shares valued at $29,000 after acquiring 171 additional shares [1] - EverSource Wealth Advisors LLC raised its stake by 193.5%, now holding 405 shares worth $43,000 after acquiring 267 shares [1] - 1620 Investment Advisors Inc. significantly increased its position by 8,790.9%, owning 978 shares valued at $116,000 after acquiring 967 shares [1] Financial Performance - UMB Financial's stock opened at $128.77, with a 50-day moving average of $122.41 and a 200-day moving average of $117.35 [2] - The company has a 1-year low of $82.00 and a 1-year high of $136.11, indicating volatility in its stock price [2] - The firm reported a net margin of 16.90% and a return on equity of 12.14% [3] Dividend Information - UMB Financial declared a quarterly dividend of $0.43, representing an annualized dividend of $1.72 and a dividend yield of 1.3% [4] - The company's payout ratio stands at 18.84%, indicating a conservative approach to dividend distribution [4] Analyst Ratings - Zacks Research upgraded UMB Financial from a "hold" to a "strong-buy" rating, reflecting positive sentiment among analysts [5] - Piper Sandler raised its price target from $145.00 to $152.00, maintaining an "overweight" rating [5] - The average target price for UMB Financial is $141.00, with a consensus rating of "Moderate Buy" [5] Insider Transactions - Director Kevin Charles Gallagher sold 388 shares at an average price of $129.30, reducing his ownership by 3.01% [7] - CEO J Mariner Kemper sold 15,367 shares at an average price of $114.58, representing a 1.00% decrease in his position [7] - In the last 90 days, insiders sold a total of 34,469 shares valued at $4,218,998, with insiders owning 5.45% of the stock [7] Company Overview - UMB Financial Corporation is a diversified financial services holding company based in Kansas City, Missouri, providing a full suite of banking services [8] - The company offers commercial and consumer banking, wealth management, trust services, investment advisory, and retirement planning [9]

Core Viewpoint - UMB Financial (UMBF) is currently viewed as a more attractive investment option compared to Commerce Bancshares (CBSH) for value investors, based on various financial metrics and earnings outlook [1][3]. Valuation Metrics - UMBF has a forward P/E ratio of 10.77, while CBSH has a higher forward P/E of 13.17, indicating that UMBF may be undervalued relative to CBSH [5]. - The PEG ratio for UMBF is 0.93, suggesting a favorable valuation when considering expected earnings growth, compared to CBSH's PEG ratio of 2.70, which indicates a higher valuation relative to growth expectations [5]. - UMBF's P/B ratio stands at 1.32, while CBSH's P/B ratio is 1.9, further supporting UMBF's position as a more attractive value option [6]. Earnings Outlook - UMBF has a Zacks Rank of 2 (Buy), indicating a stronger improvement in its earnings outlook compared to CBSH, which has a Zacks Rank of 4 (Sell) [3]. - The solid earnings outlook for UMBF contributes to its Value grade of A, while CBSH has a Value grade of C, reinforcing UMBF's superior position in the current market [6].

Core Viewpoint - Lower interest rates, favorable credit conditions, and increasing loan demand are expected to positively impact most regional banks, with UMB Financial (UMBF) positioned more favorably than its peers [1] Group 1: Market Conditions - The current environment of lower rates is beneficial for regional banks, as it can lead to reduced deposit costs [1] - Benign credit conditions are contributing to a more favorable lending landscape [1] - Improving loan demand is anticipated to support the growth of regional banks [1] Group 2: Company-Specific Insights - UMB Financial is identified as being liability-sensitive, which means it is likely to benefit from further rate cuts [1] - The expectation is that deposit costs for UMB will decline at a faster rate compared to its competitors [1]

Core Viewpoint - Lower interest rates, favorable credit conditions, and increasing loan demand are expected to positively impact most regional banks, with UMB Financial (UMBF) positioned more favorably than its peers [1] Group 1: Market Conditions - The current environment of lower rates is beneficial for regional banks, as it can lead to reduced deposit costs [1] - Benign credit conditions are contributing to a more favorable lending landscape [1] - Improving loan demand is anticipated to support the growth of regional banks [1] Group 2: Company-Specific Insights - UMB Financial is identified as being liability-sensitive, which means it is likely to benefit from further rate cuts [1] - The expectation is that deposit costs for UMB will decline at a faster rate compared to its competitors [1]

Core Viewpoint - UMB Financial (UMBF) is identified as a strong value stock opportunity, currently holding a Zacks Rank 2 (Buy) and an A grade for Value, indicating it is likely undervalued based on key financial metrics [4][7]. Valuation Metrics - UMBF has a Forward P/E ratio of 11.14, which is lower than the industry average of 11.25. Over the past year, UMBF's Forward P/E has fluctuated between 8.69 and 13.63, with a median of 11.03 [4]. - The company’s P/B ratio stands at 1.35, significantly lower than the industry average of 2.43. UMBF's P/B has ranged from 0.99 to 1.76 in the past year, with a median of 1.41 [5]. - UMBF's P/CF ratio is 15.76, which is also attractive compared to the industry average of 17.27. The P/CF for UMBF has varied between 8.94 and 16.15 over the last year, with a median of 12.36 [6]. Investment Outlook - The combination of UMBF's favorable valuation metrics and strong earnings outlook suggests that it is currently undervalued, making it an appealing investment option for value investors [7].

Core Viewpoint - UMB Financial (UMBF) is identified as a strong momentum stock with a Momentum Style Score of A and a Zacks Rank of 1 (Strong Buy), indicating potential for near-term price increases [3][4][12]. Momentum Style Score Analysis - The Momentum Style Score incorporates price changes and earnings estimate revisions, which are critical for assessing stock performance [2][9]. - UMBF's shares have increased by 3.23% over the past week, outperforming the Zacks Banks - Midwest industry, which rose by 1.85% during the same period [6]. - Over the past quarter, UMBF shares have risen by 21.12%, while the S&P 500 has only increased by 0.3% [7]. Trading Volume Insights - UMBF's average 20-day trading volume is 574,508 shares, which serves as a bullish indicator when combined with rising stock prices [8]. Earnings Outlook - In the last two months, 6 earnings estimates for UMBF have been revised upwards, increasing the consensus estimate from $11.53 to $12.03 [10]. - For the next fiscal year, 4 estimates have also moved higher, with no downward revisions noted [10]. Conclusion - Given the strong performance metrics and positive earnings outlook, UMBF is positioned as a promising investment opportunity for those seeking momentum stocks [12].

Company Performance - UMB Financial (UMBF) shares have increased by 8.9% over the past month, reaching a new 52-week high of $132.49 [1] - Year-to-date, UMB has gained 13.9%, outperforming the Zacks Finance sector's 1.8% gain and the Zacks Banks - Midwest industry's 11.1% return [1] Earnings and Revenue Expectations - UMB has consistently beaten earnings estimates, with an EPS of $3.08 reported on January 27, 2026, compared to a consensus estimate of $2.71 [2] - For the current fiscal year, UMB is projected to earn $12.03 per share on revenues of $2.89 billion, reflecting a 5.99% increase in EPS and a 7.96% increase in revenues [3] - The next fiscal year is expected to see earnings of $13.13 per share on revenues of $3.06 billion, indicating a year-over-year change of 9.15% in EPS and 6.04% in revenues [3] Valuation Metrics - UMB currently trades at 10.9 times the current fiscal year EPS estimates, which is above the peer industry average of 10.5 times [7] - On a trailing cash flow basis, UMB trades at 10.5 times, compared to the peer group's average of 11.4 times [7] - The stock has a PEG ratio of 0.94, which does not place it among the top tier of stocks from a value perspective [7] Zacks Rank and Style Scores - UMB holds a Zacks Rank of 1 (Strong Buy) due to a favorable earnings estimate revision trend [8] - The stock has a Value Score of B, a Growth Score of C, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Industry Comparison - UMBF's performance is strong, but 1st Source Corporation (SRCE) is also a notable peer with a Zacks Rank of 2 (Buy) and a Value Score of B [9] - SRCE is expected to post earnings of $6.69 per share on revenues of $461 million for the current fiscal year, with shares gaining 9.9% over the past month [10] - The Banks - Midwest industry is positioned in the top 17% of all industries, indicating favorable conditions for both UMBF and SRCE [11]

Core Insights - Zacks Premium offers tools for investors to enhance their stock market engagement and confidence [1] - The Zacks Style Scores are designed to help investors select stocks with high potential for market outperformance [3] Zacks Style Scores Overview - The Zacks Style Scores categorize stocks into four types: Value Score, Growth Score, Momentum Score, and VGM Score [4][5][6][7] - Each stock receives a rating from A to F based on its characteristics, with A indicating the highest potential for outperforming the market [3] Value Score - The Value Score identifies attractive stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4] Growth Score - The Growth Score focuses on a company's financial health and future outlook, analyzing projected and historical earnings, sales, and cash flow [5] Momentum Score - The Momentum Score assesses stocks based on price trends and earnings outlook changes, helping investors capitalize on upward or downward price movements [6] VGM Score - The VGM Score combines all three Style Scores, providing a comprehensive indicator for selecting stocks with favorable value, growth, and momentum characteristics [7] Zacks Rank Integration - The Zacks Rank uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks historically yielding an average annual return of +23.83% since 1988 [8] - Stocks with a 1 or 2 rank and Style Scores of A or B are recommended for maximizing returns [10] Company Spotlight: UMB Financial - UMB Financial Corporation, based in Kansas City, MO, offers various banking and asset servicing solutions [12] - Currently rated 3 (Hold) by Zacks, UMBF has a VGM Score of A and a Momentum Style Score of A, with shares increasing by 5.4% over the past four weeks [12][13] - Analysts have raised earnings estimates for UMBF, with the Zacks Consensus Estimate increasing by $0.40 to $11.93 per share, and an average earnings surprise of +16.3% [13]

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