Private Bancorp of America, Inc. (PBAM) Hit a 52 Week High, Can the Run Continue?

Have you been paying attention to shares of Private Bancorp of America, Inc. (PBAM)? Shares have been on the move with the stock up 5.3% over the past month. The stock hit a new 52-week high of $60 in the previous session. Private Bancorp of America, Inc. has gained 3.9% since the start of the year compared to the 26.4% move for the Zacks Finance sector and the 25.1% return for the Zacks Banks - Southwest industry.What's Driving the Outperformance?The stock has a great record of positive earnings surprises, as it hasn't missed our earnings consensus estimate in any of the last four quarters. In its last earnings report on January 17, 2025, Private Bancorp of America reported EPS of $1.82 versus consensus estimate of $1.6 while it beat the consensus revenue estimate by 5.21%.For the current fiscal year, Private Bancorp of America is expected to post earnings of $6.81 per share on $125.7 million in revenues. This represents a 10.73% change in EPS on a 17.59% change in revenues. For the next fiscal year, the company is expected to earn $7.05 per share on $139.8 million in revenues. This represents a year-over-year change of 3.52% and 11.22%, respectively.Valuation MetricsPrivate Bancorp of America may be at a 52-week high right now, but what might the future hold for the stock? A key aspect of this question is taking a look at valuation metrics in order to determine if the company is due for a pullback from this level.On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. The idea behind the style scores is to help investors pick the most appropriate Zacks Rank stocks based on their individual investment style.Private Bancorp of America has a Value Score of B. The stock's Growth and Momentum Scores are C and A, respectively, giving the company a VGM Score of B.In terms of its value breakdown, the stock currently trades at 8.8X current fiscal year EPS estimates, which is not in-line with the peer industry average of 13X. On a trailing cash flow basis, the stock currently trades at 10.7X versus its peer group's average of 10.7X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.Zacks RankWe also need to look at the Zacks Rank for the stock, as this supersedes any trend on the style score front. Fortunately, Private Bancorp of America currently has a Zacks Rank of #2 (Buy) thanks to rising earnings estimates.Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Private Bancorp of America passes the test. Thus, it seems as though Private Bancorp of America shares could still be poised for more gains ahead.How Does PBAM Stack Up to the Competition?Shares of PBAM have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Cullen/Frost Bankers, Inc. (CFR). CFR has a Zacks Rank of # 2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.Earnings were strong last quarter. Cullen/Frost Bankers, Inc. beat our consensus estimate by 3.70%, and for the current fiscal year, CFR is expected to post earnings of $8.52 per share on revenue of $2.13 billion.Shares of Cullen/Frost Bankers, Inc. have gained 4.8% over the past month, and currently trade at a forward P/E of 16.56X and a P/CF of 11.6X.The Banks - Southwest industry is in the top 4% of all the industries we have in our universe, so it looks like there are some nice tailwinds for PBAM and CFR, even beyond their own solid fundamental situation.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Private Bancorp of America, Inc. (PBAM): Free Stock Analysis Report Cullen/Frost Bankers, Inc. (CFR): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks