Shares of Univest (UVSP) have been strong performers lately, with the stock up 13.5% over the past month. The stock hit a new 52-week high of $32.77 in the previous session. Univest has gained 10.8% since the start of the year compared to the 9.9% gain for the Zacks Finance sector and the 2.7% return for the Zacks Banks - Northeast 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 April 23, 2025, Univest reported EPS of $0.77 versus consensus estimate of $0.64.
For the current fiscal year, Univest is expected to post earnings of $2.78 per share on $317.21 in revenues. This represents a 11.2% change in EPS on a 6.01% change in revenues. For the next fiscal year, the company is expected to earn $2.96 per share on $341.55 in revenues. This represents a year-over-year change of 6.47% and 7.67%, respectively.
Valuation Metrics
While Univest has moved to its 52-week high over the past few weeks, investors need to be asking, what is next for the company? 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). The individual style scores for Value, Growth, Momentum and the combined VGM Score run from A through F. 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.
Univest 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 11.8X current fiscal year EPS estimates, which is a premium to the peer industry average of 10.8X. On a trailing cash flow basis, the stock currently trades at 11.6X versus its peer group's average of 11.4X. 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 consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Univest currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
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 Univest passes the test. Thus, it seems as though Univest shares could have potential in the weeks and months to come.
How Does UVSP Stack Up to the Competition?
Shares of UVSP 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 SB Financial Group, Inc. (SBFG). SBFG has a Zacks Rank of #2 (Buy) and a Value Score of A, a Growth Score of C, and a Momentum Score of C.
Earnings were strong last quarter. SB Financial Group, Inc. beat our consensus estimate by 5.00%, and for the current fiscal year, SBFG is expected to post earnings of $2.03 per share on revenue of $64.8 million.
Shares of SB Financial Group, Inc. have gained 6.8% over the past month, and currently trade at a forward P/E of 9.49X and a P/CF of 8.3X.
The Banks - Northeast industry may rank in the bottom 58% of all the industries we have in our universe, but there still looks like there are some nice tailwinds for UVSP and SBFG, even beyond their own solid fundamental situation.
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Univest Corporation of Pennsylvania (UVSP): Free Stock Analysis Report SB Financial Group, Inc. (SBFG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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