Everything is bigger in Texas. So say Texans anyway. It's no surprise then that Texas Capital Bancshares on Jan. 18 reported an outsize 158% surge in fourth quarter revenue to a record $649 million. On Wednesday Texas Capital stock's Relative Strength Rating jumped from 77 to 83.
On Nov. 1 Texas Capital Bancshares announced that it sold its BankDirect Capital Finance business unit to Truist Financial.
Texas Capital Stock Moving Up The Ladder
The upgraded 83 RS Rating shows that Texas Capital Bancshares stock is outperforming 83% of all stocks in terms of price performance. Market research shows that the best stocks often have an RS Rating of at least 80 in the early stages of their moves. The upwardly revised rating makes the Dallas-based regional bank a watchlist candidate stock among the best stocks to watch and buy.
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Texas Capital Bancshares is trading within the 5% buying range after climbing above a 65.07 buy point in a cup with handle base on Tuesday. It rose 5.3% that day and another 2% on Wednesday, to 67.41.
Weak Earnings, But Lots Of Interest By Big Money Investors
Despite its bullish revenue growth Texas Capital Bancshares needs work on the profits side. Earnings per share last quarter slid 27% from the same quarter a year ago, to 87 cents per share. And it carries a weak 37 Earnings Per Share Rating out of 99. On the positive side, it sports a B Accumulation/Distribution Rating on an A+ to E scale. The B rating shows that institutional investors like ETFs and mutual funds are fairly heavy buyers of its stock.
Texas Capital Bancshares earns the No. 28 rank among its peers in the Banks-West/Southwest industry group. Bank7 and California Bancorp are among the group's highest-rated stocks.
The unique Relative Strength Rating tracks technical performance by using a 1 (worst) to 99 (best) score that indicates how a stock's price action over the last 52 weeks matches up against the rest of the market.
