A strong stock as of late has been Regions Financial (RF). Shares have been marching higher, with the stock up 7.3% over the past month. The stock hit a new 52-week high of $28.43 in the previous session. Regions Financial has gained 4.3% since the start of the year compared to the 19.3% move for the Zacks Finance sector and the 6.2% return for the Zacks Banks - Southeast industry.
What's Driving the Outperformance?
The stock has a great record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on October 17, 2025, Regions Financial reported EPS of $0.63 versus consensus estimate of $0.6 while it missed the consensus revenue estimate by 0.08%.
For the current fiscal year, Regions Financial is expected to post earnings of $2.58 per share on $7.54 in revenues. Meanwhile, for the next fiscal year, the company is expected to earn $2.81 per share on $7.86 in revenues. This represents a year-over-year change of 9.38% and 4.2%, respectively.
Valuation Metrics
Regions Financial 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 these give investors a variety of ways to comb 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.
Regions Financial has a Value Score of B. The stock's Growth and Momentum Scores are C and D, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 10.9X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.5X. On a trailing cash flow basis, the stock currently trades at 11.6X versus its peer group's average of 11.6X. Additionally, the stock has a PEG ratio of 1.15. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to look at the Zacks Rank for the stock, as this is even more important than the company's VGM Score. Fortunately, Regions Financial currently has a Zacks Rank of #2 (Buy) thanks to a solid earnings estimate revision trend.
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 Regions Financial meets the list of requirements. Thus, it seems as though Regions Financial shares could still be poised for more gains ahead.
How Does RF Stack Up to the Competition?
Shares of RF 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 USCB Financial Holdings, Inc. (USCB). USCB has a Zacks Rank of #1 (Strong Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of C.
Earnings were strong last quarter. USCB Financial Holdings, Inc. beat our consensus estimate by 7.14%, and for the current fiscal year, USCB is expected to post earnings of $2.17 per share on revenue of $98.45 million.
Shares of USCB Financial Holdings, Inc. have gained 3.9% over the past month, and currently trade at a forward P/E of 8.78X and a P/CF of 14.9X.
The Banks - Southeast industry is in the top 17% of all the industries we have in our universe, so it looks like there are some nice tailwinds for RF and USCB, even beyond their own solid fundamental situation.
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Regions Financial Corporation (RF): Free Stock Analysis Report USCB Financial Holdings, Inc. (USCB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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