Third Coast Bancshares, Inc. (TCBX) Soars to 52-Week High, Time to Cash Out?

Have you been paying attention to shares of Third Coast Bancshares, Inc. (TCBX)? Shares have been on the move with the stock up 22.5% over the past month. The stock hit a new 52-week high of $33.42 in the previous session. Third Coast Bancshares, Inc. has gained 65.1% since the start of the year compared to the 20.6% move for the Zacks Finance sector and the 16.5% return for the Zacks Banks - Southeast industry.What's Driving the Outperformance?The stock has an impressive 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 October 23, 2024, Third Coast Bancshares reported EPS of $0.74 versus consensus estimate of $0.53.For the current fiscal year, Third Coast Bancshares is expected to post earnings of $2.46 per share on $168.55 million in revenues. This represents a 24.24% change in EPS on a 14.09% change in revenues. For the next fiscal year, the company is expected to earn $2.69 per share on $184 million in revenues. This represents a year-over-year change of 9.17% and 9.17%, respectively.Valuation MetricsThird Coast Bancshares 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. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.Third Coast Bancshares 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 13.3X current fiscal year EPS estimates, which is a premium to the peer industry average of 13X. On a trailing cash flow basis, the stock currently trades at 14.4X versus its peer group's average of 10.2X. 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, Third Coast Bancshares currently has a Zacks Rank of #1 (Strong 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 Third Coast Bancshares passes the test. Thus, it seems as though Third Coast Bancshares shares could have a bit more room to run in the near term.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant 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 Third Coast Bancshares, Inc. (TCBX): 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