FB Financial (FBK) Zacks Investment Research·2024-05-14 16:26Core Viewpoint - FB Financial Corporation (FBK) is considered a strong investment option due to its fundamental strength and growth prospects, currently holding a Zacks Rank 1 (Strong Buy) with a 7.4% upward revision in 2024 earnings estimates over the past 30 days [1]. Earnings Growth - FBK has experienced a compound annual growth rate (CAGR) of 2.5% in earnings over the last three to five years, with projected earnings growth of 1.3% in 2024 and 2.9% in 2025 [3]. - The company has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 11.6% [4]. Revenue Strength - FBK's revenues have shown a CAGR of 7.2% from 2019 to 2023, driven by growth in net interest income. However, revenues are expected to decline by 1.6% in 2024 due to lower non-interest income, with a projected recovery and 7.8% growth in 2025 [5]. Financial Stability - FBK has a debt/equity ratio of 0.00, indicating no reliance on debt for financing operations, which contributes to its financial stability in adverse economic conditions [6]. - The company boasts a return on equity (ROE) of 10.20%, surpassing the industry average of 8.75%, reflecting superior efficiency in utilizing shareholder funds [6]. Price Performance - FBK's stock has gained 12% over the past six months, significantly outperforming the industry growth of 2.8% during the same period [2].