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A Look At Prosperity Bancshares (PB) Valuation After Recent Share Price Moves

Simply Wall St · 01/05 07:21

Why Prosperity Bancshares is on investors’ radar today

Prosperity Bancshares (PB) has drawn fresh interest after recent share price moves, with the stock last closing at $69.63. That price gives investors a current snapshot to weigh against the bank’s fundamentals.

See our latest analysis for Prosperity Bancshares.

Recent trading has been mixed, with a 1-day share price return of 0.75% and a 90-day share price return of 5.36%. Meanwhile, the 1-year total shareholder return is a 4.02% decline and the 5-year total shareholder return sits at 15.46%, suggesting that shorter term momentum is modest compared with the longer record.

If Prosperity Bancshares has you rethinking your portfolio, it could be a good moment to broaden your search with fast growing stocks with high insider ownership for fresh ideas beyond the banking sector.

With shares at $69.63, annual revenue of $1,239.671m and net income of $533.012m, recent returns are mixed and the value score is 3. Is Prosperity Bancshares quietly undervalued, or is the market already pricing in future growth?

Most Popular Narrative: 11.5% Undervalued

With Prosperity Bancshares last closing at $69.63 against a narrative fair value of about $78.67, the valuation gap rests on detailed growth and margin assumptions.

Repricing of a sizable bond portfolio and rollover of existing loans at higher yields, combined with a disciplined deposit pricing strategy and low cost core deposit base, are set to meaningfully increase net interest margin and net interest income through 2026.

Read the complete narrative.

Curious what kind of revenue lift and earnings per share path sit behind that fair value? The narrative leans on specific growth rates, firmer margins, and a future P/E that assumes investors will pay more for each dollar of profit. Want to see exactly how those moving parts add up to the current valuation gap?

Result: Fair Value of $78.67 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, rising nonperforming assets and higher net charge offs, along with ongoing pressure on loans and deposits, could quickly challenge the upbeat earnings path behind that fair value.

Find out about the key risks to this Prosperity Bancshares narrative.

Build Your Own Prosperity Bancshares Narrative

If this view does not quite line up with yours, or you prefer to lean on your own data checks, you can shape a custom thesis in just a few minutes with Do it your way.

A great starting point for your Prosperity Bancshares research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.

Looking for more investment ideas?

If Prosperity Bancshares has caught your attention, do not stop here. Broaden your watchlist so you are not relying on a single story for your next move.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.