Southern First Bancshares, Inc. (SFST) Hit a 52 Week High, Can the Run Continue?

Core Viewpoint - Southern First (SFST) has shown strong stock performance, with a 12.3% increase over the past month and a 17.3% gain since the start of the year, outperforming the Zacks Finance sector and the Zacks Banks - Southeast industry [1][2]. Financial Performance - Southern First reported an EPS of $1.07 in its last earnings report, exceeding the consensus estimate of $0.89 [2]. - For the current fiscal year, the company is expected to post earnings of $3.42 per share on revenues of $115.77 million, reflecting a 79.06% change in EPS and a 23.99% change in revenues [3]. - For the next fiscal year, earnings are projected to be $4.07 per share on revenues of $130.42 million, indicating a year-over-year change of 19.01% in EPS and 12.65% in revenues [3]. Valuation Metrics - Southern First has a Value Score of B, a Growth Score of B, and a Momentum Score of A, resulting in a combined VGM Score of A [6]. - The stock currently trades at 13.6 times the current fiscal year EPS estimates, which is a premium compared to the peer industry average of 10.7 times [7]. - On a trailing cash flow basis, the stock trades at 18.2 times, again above the peer group's average of 10.7 times [7]. Zacks Rank - Southern First holds a Zacks Rank of 2 (Buy), supported by favorable earnings estimate revisions from analysts [8]. - The company meets the criteria for selection based on Zacks Rank and Style Scores, indicating potential for future growth [9]. Industry Comparison - The Banks - Southeast industry is performing well, ranking in the top 14% of all industries, providing a favorable environment for both Southern First and its peer, Home Bancorp, Inc. (HBCP) [12]. - HBCP also has a Zacks Rank of 2 (Buy) and has shown strong earnings performance, indicating a competitive landscape within the industry [10][11].