1st Source Corporation (SRCE) Hits Fresh High: Is There Still Room to Run?

Core Viewpoint - 1st Source (SRCE) has shown strong stock performance, with an 8% increase over the past month and a new 52-week high of $69.57, outperforming the Zacks Finance sector and the Zacks Banks - Midwest industry [1] Financial Performance - The company has a consistent record of positive earnings surprises, having met or exceeded earnings consensus estimates in the last four quarters, with the latest EPS reported at $1.67 against a consensus of $1.62 [2] - For the current fiscal year, 1st Source is projected to achieve earnings of $6.69 per share on revenues of $461 million, reflecting a 4.37% increase in EPS and a 6.28% increase in revenues [3] - The next fiscal year forecasts earnings of $6.88 per share on revenues of $477.9 million, indicating year-over-year changes of 2.84% in EPS and 3.67% in revenues [3] Valuation Metrics - The stock currently trades at 10.3X current fiscal year EPS estimates, aligning with the peer industry average, and at 11.2X on a trailing cash flow basis, also matching the peer group's average [7] - 1st Source has a Value Score of B, a Growth Score of D, and a Momentum Score of A, resulting in a combined VGM Score of B [6] Zacks Rank - The stock holds a Zacks Rank of 2 (Buy), supported by a favorable earnings estimate revision trend, indicating potential for further gains [8]