Category: ABCB

ABCB – Ameris Bancorp (ABCB) Q2 Earnings Surpass Estimates

Ameris Bancorp (ABCB Free Report) came out with quarterly earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.21 per share. This compares to earnings of $0.61 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of 3.31%. A quarter ago, it was expected that this bank would post earnings of $1.12 per share when it actually produced earnings of $1.66, delivering a surprise of 48.21%.

Over the last four quarters, the company has surpassed consensus EPS estimates four times.

Ameris Bancorp, which belongs to the Zacks Banks – Southeast industry, posted revenues of $251.09 million for the quarter ended June 2021, missing the Zacks Consensus Estimate by 3.72%. This compares to year-ago revenues of $284.77 million. The company has topped consensus revenue estimates three times over the last four quarters.

The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.

Ameris Bancorp shares have added about 24.7% since the beginning of the year versus the S&P 500’s gain of 16%.

What’s Next for Ameris Bancorp?

While Ameris Bancorp has outperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Ameris Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and current fiscal year change in the days ahead. The current consensus EPS estimate is $1.14 on $255.74 million in revenues for the coming quarter and $5.22 on $1.04 billion in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks – Southeast is currently in the top 22% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

ABCB – Ameris: Q2 Earnings Insights

Shares of Ameris (NASDAQ:ABCB) were flat in after-market trading after the company reported Q2 results.

Quarterly Results

Earnings per share increased 104.92% over the past year to $1.25, which beat the estimate of $1.18.

Revenue of $251,092,000 decreased by 11.83% from the same period last year, which missed the estimate of $263,830,000.

Guidance

Ameris hasn’t issued any earnings guidance for the time being.

Ameris hasn’t issued any revenue guidance for the time being.

Recent Stock Performance

Company’s 52-week high was at $59.85

52-week low: $20.86

Price action over last quarter: down 10.06%

Company Overview

Ameris Bancorp operates as a bank. It offers services such as business banking, personal banking, checking, savings, mobile banking, and others. The bank is organized into five segments namely Banking Division, the Retail Mortgage Division, the Warehouse Lending Division, the SBA Division, and the Premium Finance Division. The company generates a majority of its revenue from the Banking division.

ABCB – Is Ameris Bancorp (ABCB) Stock Undervalued Right Now?

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.

Considering these trends, value investing is clearly one of the most preferred ways to find strong stocks in any type of market. Value investors rely on traditional forms of analysis on key valuation metrics to find stocks that they believe are undervalued, leaving room for profits.

On top of the Zacks Rank, investors can also look at our innovative Style Scores system to find stocks with specific traits. For example, value investors will want to focus on the “Value” category. Stocks with high Zacks Ranks and “A” grades for Value will be some of the highest-quality value stocks on the market today.

One stock to keep an eye on is Ameris Bancorp (ABCB Free Report) . ABCB is currently sporting a Zacks Rank of #2 (Buy) and an A for Value. The stock holds a P/E ratio of 10.82, while its industry has an average P/E of 11.64. Over the past year, ABCB’s Forward P/E has been as high as 13.55 and as low as 7.99, with a median of 10.89.

We should also highlight that ABCB has a P/B ratio of 1.28. The P/B is a method of comparing a stock’s market value to its book value, which is defined as total assets minus total liabilities. This stock’s P/B looks attractive against its industry’s average P/B of 1.74. Over the past 12 months, ABCB’s P/B has been as high as 1.48 and as low as 0.58, with a median of 1.03.

Value investors also love the P/S ratio, which is calculated by simply dividing a stock’s price with the company’s sales. Some people prefer this metric because sales are harder to manipulate on an income statement. This means it could be a truer performance indicator. ABCB has a P/S ratio of 2.85. This compares to its industry’s average P/S of 2.89.

Finally, our model also underscores that ABCB has a P/CF ratio of 8.92. This metric takes into account a company’s operating cash flow and can be used to find stocks that are undervalued based on their solid cash outlook. ABCB’s P/CF compares to its industry’s average P/CF of 14.89. ABCB’s P/CF has been as high as 13.34 and as low as 6.28, with a median of 9.91, all within the past year.

These are just a handful of the figures considered in Ameris Bancorp’s great Value grade. Still, they help show that the stock is likely being undervalued at the moment. Add this to the strength of its earnings outlook, and we can clearly see that ABCB is an impressive value stock right now.

ABCB – Ameris Bancorp (ABCB) is a Great Momentum Stock: Should You Buy?

Momentum investing revolves around the idea of following a stock’s recent trend in either direction. In the ‘long’ context, investors will be essentially be “buying high, but hoping to sell even higher.” With this methodology, taking advantage of trends in a stock’s price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at Ameris Bancorp (ABCB Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It’s also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Ameris Bancorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of A or B outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?

Let’s discuss some of the components of the Momentum Style Score for ABCB that show why this bank shows promise as a solid momentum pick.

A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It’s also helpful to compare a security to its industry; this can show investors the best companies in a particular area.

For ABCB, shares are up 2.78% over the past week while the Zacks Banks – Southeast industry is down 0.05% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 15.17% compares favorably with the industry’s 3.23% performance as well.

While any stock can see its price increase, it takes a real winner to consistently beat the market. That is why looking at longer term price metrics — such as performance over the past three months or year — can be useful as well. Shares of Ameris Bancorp have increased 22.84% over the past quarter, and have gained 170.3% in the last year. On the other hand, the S&P 500 has only moved 9.74% and 43.57%, respectively.

Investors should also take note of ABCB’s average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now, ABCB is averaging 457,440 shares for the last 20 days.

Earnings Outlook

The Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with ABCB.

Over the past two months, 2 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost ABCB’s consensus estimate, increasing from $4.15 to $5.19 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom Line

Taking into account all of these elements, it should come as no surprise that ABCB is a #2 (Buy) stock with a Momentum Score of A. If you’ve been searching for a fresh pick that’s set to rise in the near-term, make sure to keep Ameris Bancorp on your short list.

ABCB – What Makes Ameris Bancorp (ABCB) a New Strong Buy Stock

Investors might want to bet on Ameris Bancorp (ABCB Free Report) , as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates — one of the most powerful forces impacting stock prices.

The Zacks rating relies solely on a company’s changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure — the Zacks Consensus Estimate.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

As such, the Zacks rating upgrade for Ameris Bancorp is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company’s future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company’s shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

For Ameris Bancorp, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company’s underlying business. And investors’ appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here >>>>.

Earnings Estimate Revisions for Ameris Bancorp

For the fiscal year ending December 2021, this bank is expected to earn $4.19 per share, which is a change of -3.2% from the year-ago reported number.

Analysts have been steadily raising their estimates for Ameris Bancorp. Over the past three months, the Zacks Consensus Estimate for the company has increased 18.4%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of ‘buy’ and ‘sell’ ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a ‘Strong Buy’ rating and the next 15% get a ‘Buy’ rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Ameris Bancorp to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

ABCB – Why Ameris (ABCB) Stock Might be a Great Pick

One stock that might be an intriguing choice for investors right now is Ameris Bancorp (ABCB Free Report) . This is because this security in the Banks – Southeast space is seeing solid earnings estimate revision activity, and is in great company from a Zacks Industry Rank perspective.

This is important because, often times, a rising tide will lift all boats in an industry, as there can be broad trends taking place in a segment that are boosting securities across the board. This is arguably taking place in the Banks – Southeast space as it currently has a Zacks Industry Rank of 18 out of more than 250 industries, suggesting it is well-positioned from this perspective, especially when compared to other segments out there.

Meanwhile, Ameris is actually looking pretty good on its own too. The firm has seen solid earnings estimate revision activity over the past month, suggesting analysts are becoming a bit more bullish on the firm’s prospects in both the short and long term.

In fact, over the past month, current quarter estimates have risen from $1.10 per share to $1.14 per share, while current year estimates have risen from $3.31 per share to $3.56 per share. This has helped ABCB to earn a Zacks Rank #1 (Strong Buy), further underscoring the company’s solid position. You can see the complete list of today’s Zacks #1 Rank stocks here.

So, if you are looking for a decent pick in a strong industry, consider Ameris. Not only is its industry currently in the top third, but it is seeing solid estimate revisions as of late, suggesting it could be a very interesting choice for investors seeking a name in this great industry segment.

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