Is Prosperity Bancshares Stock a Good Investment?

Prosperity Bancshares Investment Advice

  PB
To provide specific investment advice or recommendations on Prosperity Bancshares stock, we recommend investors consider the following general factors when evaluating Prosperity Bancshares. This will help you to make an informed decision on whether to include Prosperity Bancshares in one of your diversified portfolios:
  • Examine Prosperity Bancshares' financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
  • Research Prosperity Bancshares' leadership team and their track record. Good management can help Prosperity Bancshares navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
  • Consider the overall health of the Regional Banks space and any emerging trends that could impact Prosperity Bancshares' business and its evolving consumer preferences.
  • Compare Prosperity Bancshares' performance and market position to its competitors. Analyze how Prosperity Bancshares is positioned in terms of product offerings, innovation, and market share.
  • Check if Prosperity Bancshares pays a dividend and its dividend yield and payout ratio.
  • Review what financial analysts are saying about Prosperity Bancshares' stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Prosperity Bancshares stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Prosperity Bancshares is a good investment.
 
Sell
 
Buy
Hold
Macroaxis provides advice on Prosperity Bancshares to complement and cross-verify current analyst consensus on Prosperity Bancshares. Our recommendation engine determines the firm's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon. To make sure Prosperity Bancshares is not overpriced, please check all Prosperity Bancshares fundamentals, including its debt to equity, beta, and the relationship between the net income and earnings per share . Given that Prosperity Bancshares has a number of shares shorted of 1.4 M, we recommend you to check out Prosperity Bancshares market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your recent risk tolerance and investing horizon.

Market Performance

GoodDetails

Volatility

Very steadyDetails

Hype Condition

Over hypedDetails

Current Valuation

OvervaluedDetails

Odds Of Distress

LowDetails

Economic Sensitivity

Actively responds to the marketDetails

Investor Sentiment

InterestedDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails

Examine Prosperity Bancshares Stock

Researching Prosperity Bancshares' stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 83.0% of the company shares are owned by institutional investors. The company has price-to-book ratio of 1.06. Typically companies with comparable Price to Book (P/B) are able to outperform the market in the long run. Prosperity Bancshares last dividend was issued on the 13th of December 2024. The entity had 2:1 split on the 3rd of June 2002.
To determine if Prosperity Bancshares is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Prosperity Bancshares' research are outlined below:
Prosperity Bancshares has a poor financial position based on the latest SEC disclosures
Over 83.0% of the company shares are owned by institutional investors
On 1st of October 2024 Prosperity Bancshares paid $ 0.56 per share dividend to its current shareholders
Latest headline from gurufocus.com: Prosperity Bancshares Inc Stock Price Up 3.22 percent on Nov 11

Prosperity Bancshares Quarterly Liabilities And Stockholders Equity

35.37 Billion

Prosperity Bancshares uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Prosperity Bancshares. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Prosperity Bancshares' previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
24th of April 2024
Upcoming Quarterly Report
View
24th of July 2024
Next Financial Report
View
31st of March 2024
Next Fiscal Quarter End
View
22nd of January 2025
Next Fiscal Year End
View
31st of December 2023
Last Quarter Report
View
31st of December 2023
Last Financial Announcement
View
Earnings surprises can significantly impact Prosperity Bancshares' stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Prosperity Bancshares' investors have experienced.
Reported
Fiscal Date
Estimated EPS
Reported EPS
Surprise
2001-07-12
2001-06-300.20.220.0210 
2000-01-18
1999-12-310.160.180.0212 
1999-04-12
1999-03-310.120.140.0216 
2002-10-21
2002-09-300.290.320.0310 
2009-07-17
2009-06-300.50.570.0714 
2008-10-17
2008-09-300.470.33-0.1429 
2024-01-24
2023-12-311.171.02-0.1512 
2020-04-29
2020-03-311.181.380.216 

Know Prosperity Bancshares' Top Institutional Investors

Have you ever been surprised when a price of an equity instrument such as Prosperity Bancshares is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Prosperity Bancshares backward and forwards among themselves. Prosperity Bancshares' institutional investor refers to the entity that pools money to purchase Prosperity Bancshares' securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
Shares
Geode Capital Management, Llc2024-06-30
1.7 M
Charles Schwab Investment Management Inc2024-06-30
1.2 M
Snyder Capital Management Lp2024-06-30
1.1 M
Bank Of New York Mellon Corp2024-06-30
935.4 K
Norges Bank2024-06-30
859 K
Verition Fund Managegment, Llc2024-06-30
830.7 K
Thrivent Financial For Lutherans2024-06-30
811.8 K
Vaughan Nelson Scarbrgh & Mccullough Lp2024-06-30
799.1 K
Northern Trust Corp2024-06-30
796.9 K
Vanguard Group Inc2024-06-30
9.8 M
Blackrock Inc2024-06-30
8.8 M
Note, although Prosperity Bancshares' institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Prosperity Bancshares' market capitalization trends

The company currently falls under 'Mid-Cap' category with a market capitalization of 7.83 B.

Market Cap

6.29 Billion

Prosperity Bancshares' profitablity analysis

Last ReportedProjected for Next Year
Return On Tangible Assets 0.01  0.01 
Return On Capital Employed 0.02  0.02 
Return On Assets 0.01  0.01 
Return On Equity 0.06  0.10 
The company has Net Profit Margin (PM) of 0.39 %, which suggests that even a small decline in it sales will erase profits and may result in a net loss, or a negative profit margin. This is way below average. Likewise, it shows Net Operating Margin (NOM) of 0.57 %, which signifies that for every $100 of sales, it has a net operating income of $0.57.
Determining Prosperity Bancshares' profitability involves analyzing its financial statements and using various financial metrics to determine if Prosperity Bancshares is a good buy. For example, gross profit margin measures Prosperity Bancshares' profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Prosperity Bancshares' profitability and make more informed investment decisions.
Please note, the presentation of Prosperity Bancshares' financial position, as portrayed in its financial statements, is often influenced by management's estimates, judgments, and sometimes even manipulations. In the best case, Prosperity Bancshares' management is honest, while the outside auditors are strict and uncompromising. Please utilize our Beneish M Score to check the likelihood of Prosperity Bancshares' management manipulating its earnings.

Evaluate Prosperity Bancshares' management efficiency

Prosperity Bancshares has Return on Asset (ROA) of 0.0112 % which means that for every $100 of assets, it generated a profit of $0.0112. This is way below average. Likewise, it shows a return on total equity (ROE) of 0.0618 %, which means that it produced $0.0618 on every 100 dollars invested by current stockholders. Prosperity Bancshares' management efficiency ratios could be used to measure how well Prosperity Bancshares manages its routine affairs as well as how well it operates its assets and liabilities. The current year's Return On Equity is expected to grow to 0.10, whereas Return On Tangible Assets are forecasted to decline to 0.01. At present, Prosperity Bancshares' Total Assets are projected to increase significantly based on the last few years of reporting. The current year's Non Current Assets Total is expected to grow to about 40 B, whereas Other Assets are forecasted to decline to about 17.8 B.
Last ReportedProjected for Next Year
Book Value Per Share 76.20  47.42 
Tangible Book Value Per Share 38.96  31.72 
Enterprise Value Over EBITDA 319.94  335.94 
Price Book Value Ratio 0.89  1.56 
Enterprise Value Multiple 319.94  335.94 
Price Fair Value 0.89  1.56 
Enterprise Value7.3 B7.6 B
Prosperity Bancshares' management has consistently demonstrated strong leadership, driving both financial growth and operational excellence. By analyzing current market trends and future growth opportunities, we assess the stock's true value and potential for investors.
Dividend Yield
0.0282
Forward Dividend Yield
0.0282
Forward Dividend Rate
2.32
Beta
0.906

Basic technical analysis of Prosperity Stock

As of the 12th of November 2024, Prosperity Bancshares holds the Coefficient Of Variation of 644.92, risk adjusted performance of 0.1238, and Semi Deviation of 1.07. Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Prosperity Bancshares, as well as the relationship between them.

Prosperity Bancshares' insider trading activities

Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Prosperity Bancshares insiders, such as employees or executives, is commonly permitted as long as it does not rely on Prosperity Bancshares' material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Prosperity Bancshares insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.

Prosperity Bancshares' Outstanding Corporate Bonds

Prosperity Bancshares issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Prosperity Bancshares uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Prosperity bonds can be classified according to their maturity, which is the date when Prosperity Bancshares has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.

Understand Prosperity Bancshares' technical and predictive indicators

Using predictive indicators to make investment decisions involves analyzing Prosperity Bancshares' various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.

Consider Prosperity Bancshares' intraday indicators

Prosperity Bancshares intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Prosperity Bancshares stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.

Prosperity Bancshares Corporate Filings

7th of November 2024
Other Reports
ViewVerify
8K
23rd of October 2024
Report filed with the SEC to announce major events that shareholders should know about
ViewVerify
13A
16th of October 2024
An amended filing to the original Schedule 13G
ViewVerify
10Q
7th of August 2024
Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations
ViewVerify
Prosperity Bancshares time-series forecasting models is one of many Prosperity Bancshares' stock analysis techniques aimed to predict future share value based on previously observed values. Time-series forecasting models ae widely used for non-stationary data. Non-stationary data are called the data whose statistical properties e.g. the mean and standard deviation are not constant over time but instead, these metrics vary over time. These non-stationary Prosperity Bancshares' historical data is usually called time-series. Some empirical experimentation suggests that the statistical forecasting models outperform the models based exclusively on fundamental analysis to predict the direction of the market movement and maximize returns from investment trading.

Prosperity Stock media impact

Far too much social signal, news, headlines, and media speculation about Prosperity Bancshares that are available to investors today. That information is available publicly through Prosperity media outlets and privately through word of mouth or via Prosperity internal channels. However, regardless of the origin, that massive amount of Prosperity data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Prosperity Bancshares news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Prosperity Bancshares relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Prosperity Bancshares' headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Prosperity Bancshares alpha.

Prosperity Bancshares Sentiment by Major News Outlets

Investor sentiment, mood or attitude towards Prosperity Bancshares can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.

Prosperity Bancshares Corporate Directors

Perry MuellerDirectorProfile
Ned HolmesIndependent DirectorProfile
Harrison StaffordIndependent DirectorProfile
Leah HendersonIndependent DirectorProfile
Check out Your Equity Center to better understand how to build diversified portfolios, which includes a position in Prosperity Bancshares. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of labor statistics.
For information on how to trade Prosperity Stock refer to our How to Trade Prosperity Stock guide.
You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Regional Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Prosperity Bancshares. If investors know Prosperity will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Prosperity Bancshares listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.116
Dividend Share
2.24
Earnings Share
4.69
Revenue Per Share
12.146
Quarterly Revenue Growth
0.088
The market value of Prosperity Bancshares is measured differently than its book value, which is the value of Prosperity that is recorded on the company's balance sheet. Investors also form their own opinion of Prosperity Bancshares' value that differs from its market value or its book value, called intrinsic value, which is Prosperity Bancshares' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Prosperity Bancshares' market value can be influenced by many factors that don't directly affect Prosperity Bancshares' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
In summary, please note that there is a difference between Prosperity Bancshares' value and its price, as these two are different measures arrived at by various means. Investors typically determine if Prosperity Bancshares is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Prosperity Bancshares' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.