What's Driving QCR Holdings Inc's Surprising 20% Stock Rally?

QCR Holdings Inc (QCRH, Financial) has recently caught the attention of investors with its notable stock performance. Over the past week, the company's stock price has seen a gain of 5.05%, and looking at a broader timeline, it has surged by 19.57% over the past three months. With a current market capitalization of $948.343 million and a stock price of $56.62, QCR Holdings Inc is now considered fairly valued according to the GF Value, which stands at $55.64. This valuation marks a slight increase from the past GF Value of $55.28, indicating that the stock was previously seen as modestly undervalued. This shift in valuation reflects the positive momentum the stock has experienced recently.

Introduction to QCR Holdings Inc

QCR Holdings Inc operates within the banking industry, functioning as a multi-bank holding company. The company's operations are segmented into Commercial Banking, Wealth Management, and other areas, with the majority of its revenue stemming from interest income. The commercial banking segment is further divided into market-specific divisions, including QCBT, CRBT, CSB, and SFCB. This diversified approach allows QCR Holdings to cater to a broad customer base and maintain a stable revenue stream. 1750175807311081472.png

Assessing QCR Holdings' Profitability

When it comes to profitability, QCR Holdings Inc holds a Profitability Rank of 6/10. This rank is a testament to the company's ability to generate earnings as compared to other companies in the industry. The Return on Equity (ROE) stands at a robust 14.08%, which is better than 73.57% of its peers in the banking industry. Furthermore, the Return on Assets (ROA) is at 1.38%, surpassing 73.35% of the industry's companies. Impressively, QCR Holdings has maintained profitability for the past 10 years, a feat better than 99.93% of its competitors. 1750175826114146304.png

Growth Trajectory of QCR Holdings

The company's Growth Rank is also at 6/10, reflecting a solid track record of revenue and earnings growth. The 3-Year Revenue Growth Rate per Share is at 9.70%, outperforming 66.38% of the industry, while the 5-Year Revenue Growth Rate per Share is even more impressive at 12.20%, surpassing 82.19% of its peers. Earnings growth is also strong, with a 3-Year EPS without NRI Growth Rate of 22.90% and a 5-Year EPS without NRI Growth Rate of 21.80%, both metrics ranking better than the majority of the industry. These growth rates demonstrate QCR Holdings' ability to expand its financial footprint consistently. 1750175843340152832.png

Investor Confidence in QCR Holdings

Notable investors have taken positions in QCR Holdings, signaling confidence in the company's prospects. Jim Simons (Trades, Portfolio) leads the pack with 360,672 shares, representing a 2.16% share percentage. Mairs and Power (Trades, Portfolio) follows with 157,470 shares, accounting for 0.94% of the shares, and Ken Fisher (Trades, Portfolio) holds a stake of 37,146 shares, translating to 0.22%. The presence of these prominent investors suggests a strong belief in the company's value and potential for growth.

Competitive Landscape

QCR Holdings Inc operates in a competitive environment, with close rivals such as Brookline Bancorp Inc (BRKL, Financial) with a market cap of $955.312 million, Preferred Bank (PFBC, Financial) valued at $1.01 billion, and Lakeland Bancorp Inc (LBAI, Financial) at $927.982 million. These companies, with market capitalizations similar to QCR Holdings, provide a context for understanding its market position and performance relative to its peers.

Conclusion: QCR Holdings' Market Position and Future Outlook

In summary, QCR Holdings Inc has demonstrated a strong stock performance, with significant gains over the past week and three months. The company's profitability and growth metrics are commendable, with a consistent track record that outshines many in the banking industry. The confidence shown by major holders further solidifies the company's standing. When juxtaposed with its competitors, QCR Holdings maintains a competitive edge, suggesting a stable market position. Given these factors, the company's stability and potential for future growth remain promising for value investors seeking opportunities in the banking sector.

This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.

Disclosures

I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.