1st Source (US:SRCE) ZACKS·2025-02-25 20:45Market Overview - Wall Street is currently in a risk-off mode as investors are selling off various assets, including Bitcoin, Constellation Energy, and Tesla, in anticipation of Nvidia's earnings release [1] - This selloff is affecting major momentum stocks and is contributing to a cooling of an overheated market [1] Investment Opportunities - Despite the market downturn, there are still strong stocks available that are trading near their highs, indicating potential investment opportunities [2] - Zacks Rank 1 (Strong Buy) stocks have historically outperformed the market, making them a focus for investors [3] Screening Criteria - The screening process for identifying Zacks Rank 1 stocks includes three main parameters: 1. Zacks Rank equal to 1, which has an average annual return of approximately 24.4% since 1988 [5] 2. Positive percentage change in Q1 earnings estimates over the last four weeks [6] 3. Top 5 stocks with the best average broker rating changes over the last four weeks [7] Featured Stock: 1st Source (SRCE) - 1st Source is highlighted as a strong investment opportunity, being the largest locally controlled financial institution in its region [7] - The company has consistently topped EPS estimates for six consecutive quarters, with FY25 EPS estimates increasing by 8% in the last month and FY26 estimates rising by 10% [8] - 1st Source has achieved record net income for four consecutive years and has expanded its dividend for 37 years [9] - Projected EPS growth for 2025 is 6%, with sales expansion of 7%, and for 2026, EPS growth is projected at 3% with sales expansion of 3% [9] - Over the past decade, SRCE stock has increased by 130%, outperforming the Finance sector's 85% growth [10] - Despite its strong performance, SRCE trades at a 43% discount to its highs and 35% below its sector average, with a forward P/E ratio of 11X [13]