Orange County Bancorp, Inc. (OBT) Hits Fresh High: Is There Still Room to Run?

Company Performance - Shares of Orange County Bancorp, Inc. (OBT) have increased by 16.7% over the past month and reached a new 52-week high of $35.07 [1] - The stock has gained 19.3% since the beginning of the year, outperforming the Zacks Finance sector's 0.5% and the Zacks Banks - Northeast industry's 12.4% [1] Earnings and Revenue Expectations - OBT has a strong record of positive earnings surprises, not missing earnings consensus estimates in the last four quarters [2] - For the current fiscal year, OBT is expected to post earnings of $3.32 per share on revenues of $136.5 million, reflecting a -0.3% change in EPS and a 7.31% change in revenues [3] - For the next fiscal year, earnings are projected to be $3.78 per share on revenues of $142.5 million, indicating a year-over-year change of 13.86% in EPS and 4.4% in revenues [3] Valuation Metrics - OBT currently trades at 10.3X current fiscal year EPS estimates, which is a premium compared to the peer industry average of 10.1X [7] - On a trailing cash flow basis, the stock trades at 12.5X versus the peer group's average of 12.6X [7] Zacks Rank and Style Scores - OBT has a Zacks Rank of 2 (Buy) due to rising earnings estimates [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][9] Industry Comparison - The Banks - Northeast industry is in the top 21% of all industries, indicating favorable conditions for both OBT and its peers [12] - Atlantic Union Bankshares Corporation (AUB), a peer, has a Zacks Rank of 1 (Strong Buy) and is expected to post earnings of $3.76 per share on revenues of $1.57 billion for the current fiscal year [10][11]