Key Takeaways Low price-to-sales ratios uncover stocks with undervalued but improving revenue trends and operating traction.The screen highlights stocks with operational strength, disciplined capital allocation and sustained growth.Pairing sales valuations with solid balance sheets helps identify value opportunities with durability.Investing in stocks based on valuation metrics is a proven strategy for identifying opportunities with strong upside potential. While the price-to-earnings (P/E) ratio is a popul ...

Core Viewpoint - PCB Bancorp has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Movement - The Zacks rating system is effective for individual investors as it focuses on earnings estimate revisions, which are strongly correlated with near-term stock price movements [2][3]. - Institutional investors rely on earnings estimates to determine the fair value of stocks, leading to significant price movements based on their buying or selling activities [3]. Company Performance and Outlook - The upgrade for PCB Bancorp indicates an improvement in the company's underlying business, which is expected to positively influence its stock price [4]. - PCB Bancorp's earnings estimate for the fiscal year ending December 2026 is projected at $2.81 per share, with a 5% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [6]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [8][9].

Core Viewpoint - Three stocks with strong momentum and buy rank are highlighted for investors: Taiwan Semiconductor Manufacturing Company Limited, Sierra Bancorp, and PCB Bancorp [1][2][3] Group 1: Taiwan Semiconductor Manufacturing Company Limited (TSM) - TSM has a Zacks Rank of 1 and a 15.5% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [1] - TSM's shares gained 14.4% over the past three months, outperforming the S&P 500's 1.7% increase [2] - TSM possesses a Momentum Score of A [2] Group 2: Sierra Bancorp (BSRR) - BSRR has a Zacks Rank of 1 and a 2.7% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [2] - BSRR's shares gained 23.4% over the last three months, significantly outperforming the S&P 500's 1.7% increase [3] - BSRR possesses a Momentum Score of A [3] Group 3: PCB Bancorp (PCB) - PCB has a Zacks Rank of 1 and a 2.2% increase in the Zacks Consensus Estimate for current year earnings over the last 60 days [3] - PCB's shares gained 6.9% over the last three months, also outperforming the S&P 500's 1.7% increase [3] - PCB possesses a Momentum Score of A [3]

Core Viewpoint - PCB Bancorp reported quarterly earnings of $0.64 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and showing an increase from $0.46 per share a year ago, indicating a positive earnings surprise of +5.79% [1] Financial Performance - The company achieved revenues of $29.17 million for the quarter ended December 2025, which was below the Zacks Consensus Estimate by 0.94%, but an increase from $26.21 million year-over-year [2] - Over the last four quarters, PCB Bancorp has surpassed consensus EPS estimates four times, but has only topped consensus revenue estimates once [2] Stock Performance - PCB Bancorp shares have declined approximately 0.5% since the beginning of the year, while the S&P 500 has gained 1.9% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating expectations of underperformance in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.65 on revenues of $30.4 million, and for the current fiscal year, it is $2.67 on revenues of $125.8 million [7] - The trend of estimate revisions for PCB Bancorp was unfavorable prior to the earnings release, which may change following the recent report [6] Industry Context - The Banks - Southwest industry, to which PCB Bancorp belongs, is currently ranked in the top 32% of over 250 Zacks industries, suggesting a favorable industry outlook [8]

Financial Performance - Net income available to common shareholders for Q4 2025 was $9.1 million, or $0.64 per diluted share, compared to $11.3 million, or $0.78 per diluted share in Q3 2025, and $6.7 million, or $0.46 per diluted share in Q4 2024[1][3][6] - For the full year 2025, net income available to common shareholders was $37.2 million, or $2.58 per diluted share, an increase of 48.8% from $25.0 million, or $1.74 per diluted share in 2024[1][6] - Net income for Q4 2025 was $9,235,000, a decline of 19.1% from Q3 2025 but an increase of 31.4% from Q4 2024[42] - Earnings per common share for Q4 2025 was $0.64, down from $0.79 in Q3 2025 but up from $0.47 in Q4 2024[42] - Return on average equity (ROAE) for Q4 2025 was 9.45%, compared to 7.69% in Q4 2024, indicating improved profitability[51] Loan and Deposit Activity - Total loan growth for Q4 2025 was $70 million, representing a 10% annualized growth rate, driven by strong loan demand[4] - Total deposits decreased by $118 million, or 4.1%, to $2.80 billion in Q4 2025, primarily due to a reduction in brokered deposits[6] - Loans held-for-investment increased by $67.9 million, or 2.5%, to $2.82 billion at December 31, 2025, and increased by $191.0 million, or 7.3%, from $2.63 billion at December 31, 2024[6] - Total deposits amounted to $2.80 billion as of December 31, 2025, a decrease of 4.0% from $2.91 billion at September 30, 2025, but an increase of 6.9% from $2.62 billion at December 31, 2024[30] - The total loan to total deposit ratio increased to 101.33% on 12/31/2025 from 94.81% on 9/30/2025, indicating a higher reliance on loans relative to deposits[40] Interest Income and Margin - Net interest income for Q4 2025 was $26,627,000, a decrease of 1.3% from Q3 2025, but an increase of 14.9% from Q4 2024[10] - Total interest income for Q4 2025 was $49,865,000, a decrease of 3.1% from Q3 2025 but an increase of 7.7% from Q4 2024[42] - Net interest margin was maintained at 3.28% for Q4 2025, consistent with Q3 2025, and improved from 3.18% in Q4 2024[5][6] - The average yield on loans was 6.44% for Q4 2025, down from 6.58% in Q3 2025 and 6.63% in Q4 2024[10] Credit Losses and Provisions - Provision for credit losses was $1.0 million for Q4 2025, compared to a reversal of $(381) thousand in Q3 2025 and $2.0 million in Q4 2024[6] - Total provision for credit losses was $1,024,000 in Q4 2025, down 48.9% from $2,002,000 in Q4 2024[14] - Provision for credit losses on loans for Q4 2025 was $791,000, a significant increase from a reversal of $428,000 in Q3 2025, and a decrease of 61.3% from $2,044,000 in Q4 2024[14] Noninterest Income and Expenses - Noninterest income for the full year 2025 was $11.8 million, a 6.7% increase from $11.1 million in 2024[6] - Total noninterest income for the three months ended December 31, 2025, was $2,545 thousand, a decrease of 25.5% from $3,414 thousand in the previous quarter and a decrease of 16.4% from $3,043 thousand in the same period last year[15] - Total noninterest expense for the three months ended December 31, 2025, was $15,026 thousand, an increase of 1.1% from $14,869 thousand in the previous quarter and an increase of 8.1% from $13,894 thousand in the same period last year[16] Asset Management - Total assets decreased by $81.7 million, or 2.4%, to $3.28 billion at December 31, 2025, but increased by $217.8 million, or 7.1%, from $3.06 billion at December 31, 2024[6] - The company experienced a decrease in cash and cash equivalents, contributing to the decline in total assets for the current quarter[22] - Total investment securities rose to $160.0 million, reflecting a 6.5% increase from $150.3 million at September 30, 2025[28] Shareholder Equity - Shareholders' equity increased to $390.0 million at December 31, 2025, a rise of 1.4% from $384.5 million at September 30, 2025[33] - The book value per common share increased to $27.41 on 12/31/2025 from $26.93 on 9/30/2025, reflecting a growth of 1.8%[40] - Total shareholders' equity as of December 31, 2025, was $390,026 thousand, an increase from $363,814 thousand in the previous year[52] Risk Factors - The company has identified various risks and uncertainties that could impact future performance, including economic conditions, regulatory changes, and operational risks[38]

分组1 - Prosperity Bancshares reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.45 per share, and showing an increase from $1.37 per share a year ago, representing an earnings surprise of +0.95% [1] - The company posted revenues of $317.73 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 0.14%, and an increase from $307.61 million year-over-year [2] - The stock has gained approximately 5.5% since the beginning of the year, outperforming the S&P 500's gain of 1.9% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $1.41 on revenues of $350.24 million, and for the current fiscal year, it is $6.20 on revenues of $1.48 billion [7] - The Zacks Industry Rank for Banks - Southwest is in the top 32% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][3] Valuation Metrics - The P/S ratio compares a company's market capitalization to its revenues, providing a clearer picture of value when earnings are minimal or volatile [2][5] - A P/S ratio below 1 indicates a good bargain, as investors pay less than a dollar for each dollar of revenue generated [6] - The P/S ratio is often preferred over the price-to-earnings (P/E) ratio due to the difficulty of manipulating sales figures compared to earnings [7] Investment Opportunities - Low P/S stocks can offer compelling opportunities, often trading below their intrinsic value, making them attractive for investors seeking upside potential [3][10] - Companies such as Hamilton Insurance Group, Macy's Inc., Cognizant Technology Solutions, PCB Bancorp, and PRA Group have low P/S ratios and potential for higher returns [4][10] Company Profiles - **Hamilton Insurance Group**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap, with gross premiums written rising significantly [12][13] - **Macy's Inc.**: Undergoing a transformation with its Bold New Chapter program, focusing on digital initiatives and omnichannel retailing, currently holds a Value Score of A and Zacks Rank 2 [14][15] - **Cognizant Technology Solutions**: A leading professional services company with strong growth in Health Sciences and Financial Services, bolstered by acquisitions and AI initiatives [16][17] - **PCB Bancorp**: Offers a range of banking products and services, strategically positioned for sustained growth, currently holds a Value Score of A and Zacks Rank 2 [18][19] - **PRA Group**: Focuses on the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment, currently holds a Value Score of A and Zacks Rank 2 [20][21]

Core Insights - Investing in stocks based on valuation metrics, particularly the price-to-sales (P/S) ratio, can identify opportunities with strong upside potential, especially for unprofitable or early-stage companies [1][2][10] - Low P/S stocks often trade below their intrinsic value, making them attractive for investors seeking growth at a discount [3][6] - The P/S ratio is preferred over the price-to-earnings (P/E) ratio due to its reliability, as sales are harder to manipulate than earnings [7][10] Company Highlights - **Hamilton Insurance Group, Ltd. (HG)**: Operates in specialty insurance and reinsurance, benefiting from strong execution and a clear growth roadmap. The company has a Zacks Rank 1 and a Value Score of A, with gross premiums written rising significantly [12][13] - **Macy's Inc. (M)**: Undergoing a transformation through its "Bold New Chapter" program, focusing on digital initiatives and omnichannel retailing. The company has a Zacks Rank 2 and a Value Score of A [14][15] - **Cognizant Technology Solutions (CTSH)**: A leading professional services company with strong growth in Health Sciences and Financial Services. The acquisition of Belcan is enhancing its portfolio, and it holds a Zacks Rank 2 with a Value Score of A [16][17] - **PCB Bancorp (PCB)**: Offers a range of banking products and services, with a focus on small and medium-sized businesses. The company has a Zacks Rank 2 and a Value Score of A, positioning it for sustained growth [18][19] - **PRA Group (PRAA)**: Engaged in the purchase and management of non-performing loans, benefiting from strategic acquisitions and a positive purchasing environment. The company has a Zacks Rank 2 and a Value Score of A [20][21]

Financial Performance - For the three months ended September 30, 2025, total interest income increased to $51,471,000, up 11.4% from $45,998,000 in the same period of 2024[11] - Net income for the three months ended September 30, 2025, was $11,412,000, representing a 46.5% increase compared to $7,814,000 for the same period in 2024[11] - Noninterest income for the three months ended September 30, 2025, totaled $3,414,000, an increase of 30.2% from $2,620,000 in the same period of 2024[11] - Earnings per common share (basic) for the three months ended September 30, 2025, was $0.79, compared to $0.52 for the same period in 2024, reflecting a 51.9% increase[11] - Total comprehensive income for the three months ended September 30, 2025, was $12,531,000, compared to $11,518,000 for the same period in 2024[13] - Net income for the nine months ended September 30, 2025, was $28,218,000, an increase of 50.4% compared to $18,780,000 for the same period in 2024[19] - Total revenue for the nine months ended September 30, 2025, was $86,542,000, compared to $73,503,000 for the same period in 2024, reflecting a year-over-year increase of 17.7%[112] Credit Losses and Provisions - The provision for credit losses showed a reversal of $(381,000) for the three months ended September 30, 2025, compared to a provision of $50,000 in the same period of 2024[11] - The provision for credit losses increased to $3,004,000 for the nine months ended September 30, 2025, compared to $1,399,000 in 2024, representing a significant increase of 114.4%[19] - The provision for credit losses for the three months ended September 30, 2025, was a reversal of $428 thousand, contrasting with a provision of $193 thousand for the same period in 2024[51] - The total provision for credit losses for the nine months ended September 30, 2025, was $3,004 thousand, significantly higher than $1,399 thousand for the same period in 2024[51] Assets and Liabilities - Total shareholders' equity increased to $384,501,000 as of September 30, 2025, up from $362,300,000 at the end of September 2024, reflecting a growth of 6.6%[17] - The company reported a net cash increase of $170,706,000 in cash and cash equivalents by the end of September 2025, compared to a decrease of $49,278,000 in the same period of 2024[19] - The company’s net loans held-for-investment were valued at $2,709,523,000 as of September 30, 2025, slightly down from $2,593,839,000 at the end of 2024[40] - The company’s total deposits increased from $2,615,791,000 at the end of 2024 to $2,913,502,000 by September 30, 2025[40] - The total number of common shares outstanding increased to 14,277,164 as of September 30, 2025, from 14,266,725 at the end of September 2024, reflecting a slight increase of 0.1%[17] Loans and Credit Quality - The company experienced a net change in loans held-for-investment of $(122,040,000) for the nine months ended September 30, 2025, compared to $(141,948,000) in 2024, indicating a smaller decline of 14.2%[19] - The balance of commercial property loans as of September 30, 2025, was $10,628,000, while residential mortgage loans stood at $12,238,000[52] - The company classifies loans into risk categories, with "Pass" loans being those that do not meet lower risk ratings and "Substandard" loans indicating potential weaknesses[54][56] - The total amount of multifamily loans reached $172,098, showing a significant increase from $1,000 in the previous year[59] - The total amount of loans classified as substandard was $6,930,000[63] Interest Rate Risk Management - The Company aims to minimize the impact of changing interest rates on net interest income and the economic values of assets and liabilities[219] - As of September 30, 2025, net interest income sensitivity results indicate an asset sensitive profile, with expected increases in net interest income when interest rates rise[227] - The projected changes in net interest income sensitivity show a potential increase of 7.0% with a +200 basis point change in rates by September 30, 2025[226] - The Economic Value of Equity (EVE) sensitivity reflects a slight liability sensitive profile, indicating potential risks due to deposit behaviors and loan prepayment assumptions[228] Stock and Dividends - Cash dividends declared on common stock were $8,613,000 for the nine months ended September 30, 2025, compared to $7,704,000 for the same period in 2024, representing an increase of 11.8%[19] - The Company declared a quarterly cash dividend of $0.20 per common share on October 22, 2025, to be paid on or about November 14, 2025[113] - The Company repurchased and retired 255,767 shares of common stock at a weighted-average price of $19.41 per share during the nine months ended September 30, 2025[93] Tax and Compensation - The Company recognized tax benefits of $60,000 for Q3 2025, compared to $26,000 for Q3 2024, reflecting a significant increase in tax efficiency[95] - Total share-based compensation expense for Q3 2025 was $227,000, a 100% increase from $113,000 in Q3 2024[95] - The number of outstanding restricted stock awards at the end of Q3 2025 was 116,900 shares, with a weighted-average grant date fair value of $20.47[97]

Core Insights - PCB Bancorp reported quarterly earnings of $0.78 per share, exceeding the Zacks Consensus Estimate of $0.61 per share, and up from $0.52 per share a year ago, representing an earnings surprise of +27.87% [1] - The company posted revenues of $30.39 million for the quarter ended September 2025, slightly missing the Zacks Consensus Estimate by 0.19%, but up from $25.34 million year-over-year [2] - PCB Bancorp has surpassed consensus EPS estimates three times over the last four quarters and topped consensus revenue estimates two times in the same period [2] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.59 on revenues of $30.7 million, while for the current fiscal year, the estimate is $2.37 on revenues of $117.25 million [7] - The estimate revisions trend for PCB Bancorp was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southwest industry, to which PCB Bancorp belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]