Have you been paying attention to shares of Orrstown Financial Services (ORRF)? Shares have been on the move with the stock up 3.2% over the past month. The stock hit a new 52-week high of $43 in the previous session. Orrstown has gained 20.2% since the start of the year compared to the 6.1% gain for the Zacks Finance sector and the 22.6% return for the Zacks Banks - Northeast industry.
What's Driving the Outperformance?
The stock has an impressive record of positive earnings surprises, having beaten the Zacks Consensus Estimate in each of the last four quarters. In its last earnings report on July 21, 2026, Orrstown reported EPS of $1.09 versus consensus estimate of $1.03.
For the current fiscal year, Orrstown is expected to post earnings of $4.37 per share on $259.85 in revenues. This represents a 2.1% change in EPS on a 3.07% change in revenues. For the next fiscal year, the company is expected to earn $4.41 per share on $269.7 in revenues. This represents a year-over-year change of 0.99% and 3.79%, respectively.
Valuation Metrics
While Orrstown has moved to its 52-week high in the recent past, investors need to be asking, what is next for the company? A key aspect of this question is taking a look at valuation metrics in order to determine if the company has run ahead of itself.
On this front, we can look at the Zacks Style Scores, as they provide investors with an additional way to sort through stocks (beyond looking at the Zacks Rank of a security). These styles are represented by grades running from A to F in the categories of Value, Growth, and Momentum, while there is a combined VGM Score as well. Investors should consider the style scores a valuable tool that can help you to pick the most appropriate Zacks Rank stocks based on their individual investment style.
Orrstown has a Value Score of B. The stock's Growth and Momentum Scores are D and B, respectively, giving the company a VGM Score of B.
In terms of its value breakdown, the stock currently trades at 9.7X current fiscal year EPS estimates, which is not in-line with the peer industry average of 11.1X. On a trailing cash flow basis, the stock currently trades at 11.1X versus its peer group's average of 12.6X. This isn't enough to put the company in the top echelon of all stocks we cover from a value perspective.
Zacks Rank
We also need to consider the stock's Zacks Rank, as this supersedes any trend on the style score front. Fortunately, Orrstown currently has a Zacks Rank of #2 (Buy) thanks to favorable earnings estimate revisions from covering analysts.
Since we recommend that investors select stocks carrying Zacks Rank of 1 (Strong Buy) or 2 (Buy) and Style Scores of A or B, it looks as if Orrstown fits the bill. Thus, it seems as though Orrstown shares could have a bit more room to run in the near term.
How Does ORRF Stack Up to the Competition?
Shares of ORRF have been soaring, and the company still appears to be a decent choice, but what about the rest of the industry? One industry peer that looks good is Citizens Financial Group, Inc. (CFG). CFG has a Zacks Rank of #2 (Buy) and a Value Score of B, a Growth Score of D, and a Momentum Score of A.
Earnings were strong last quarter. Citizens Financial Group, Inc. beat our consensus estimate by 4.00%, and for the current fiscal year, CFG is expected to post earnings of $5.30 per share on revenue of $9.14 billion.
Shares of Citizens Financial Group, Inc. have gained 2.1% over the past month, and currently trade at a forward P/E of 13.57X and a P/CF of 13.37X.
The Banks - Northeast industry is in the top 30% of all the industries we have in our universe, so it looks like there are some nice tailwinds for ORRF and CFG, even beyond their own solid fundamental situation.
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