Recent performance snapshot for Home Bancshares stock

Home Bancshares (HOMB) shares recently closed at $28.35, with a modest loss over the past year despite positive total returns over the past 3 years and 5 years, which may interest longer term investors.

Shorter term moves have been mixed, with a 1 day return of about a 3.3% decline, a 7 day return of roughly a 2% decline, and a small loss over the past month. Over the past 3 months the shares show a mid single digit gain.

In this context, the stock carries a value score of 5 and an indicated intrinsic discount of about 44%. Some investors might use these figures as starting points when comparing HOMB with other regional bank stocks.

On the fundamentals side, Home Bancshares reports annual revenue of roughly $1.07b and net income of about $475.44m, with single digit annual growth rates in both revenue and net income based on the latest available data.

Recent trading has been slightly soft, with a 1 day share price return of a 3.31% decline and a 7 day share price return of a 2.04% decline, which contrasts with a 3.58% gain over 90 days and solid multi year total shareholder returns.

If you are comparing HOMB with peers, this can be a good moment to scan for other regional lenders and broaden your watchlist using solid balance sheet and fundamentals stocks screener (None results)

With HOMB trading at $28.35 and indicators pointing to an intrinsic discount of about 44%, the big question is whether this gap reflects a genuine mispricing or whether the market is already factoring in expectations about future growth.

Most Popular Narrative: 14.4% Undervalued

Home Bancshares most followed narrative puts fair value at $33.13 versus the recent $28.35 close, which immediately raises questions about what is built into the model.

Consistent investment and expansion in specialized lending areas such as marine finance, investor real estate, and trust/wealth management are contributing to increased non interest income and improved net margin stability. Digital banking capabilities are being gradually enhanced, with new team additions such as the DFW mortgage group already showing profitability, which should further improve cost efficiency and expand customer reach over time, supporting margins and earnings.

Curious what earnings path and margin profile support that higher fair value. The model leans on steady revenue gains, firmer profitability, and a richer future earnings multiple. Want to see how those pieces fit together into $33.13. The full narrative spells out the assumptions line by line.

Result: Fair Value of $33.13 (UNDERVALUED)

However, investors still need to weigh the reliance on acquisitions and concentrated loan exposure in areas like multifamily and marine finance, as these factors could pressure earnings if conditions weaken.

Build Your Own Home Bancshares (Conway AR) Narrative

If you look at the numbers and come to a different conclusion, or simply prefer your own research path, you can build a custom view in just a few minutes with Do it your way

A good starting point is our analysis highlighting 5 key rewards investors are optimistic about regarding Home Bancshares (Conway AR).

Looking for more investment ideas?

If HOMB has your attention, do not stop here. Broaden your watchlist with a few focused stock ideas that could suit very different investing angles.

• Target income potential by scanning these 13 dividend stocks with yields > 3% that might help you build a steadier stream of payouts alongside your core holdings.
• Jump ahead of emerging themes with these 24 AI penny stocks that sit at the intersection of technology, automation, and long term growth stories.
• Hunt for possible mispriced opportunities using these 874 undervalued stocks based on cash flows that some investors use as a starting pool for deeper fundamental research.

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.