Since November 2025, Home Bancshares has been in a holding pattern, posting a small loss of 2.7% while floating around $26.81. The stock also fell short of the S&P 500’s 7.7% gain during that period.
Is now the time to buy Home Bancshares, or should you be careful about including it in your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.
Why Is Home Bancshares Not Exciting?
We're cautious about Home Bancshares. Here are three reasons you should be careful with HOMB and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Two primary revenue streams drive bank earnings. While net interest income, which is earned by charging higher rates on loans than paid on deposits, forms the foundation, fee-based services across banking, credit, wealth management, and trading operations provide additional income.
Regrettably, Home Bancshares’s revenue grew at a mediocre 9% compounded annual growth rate over the last five years. This was below our standard for the banking sector.
2. Net Interest Income Points to Soft Demand
Markets consistently prioritize net interest income over non-recurring fees, recognizing its superior quality compared to the more unpredictable revenue streams.
Home Bancshares’s net interest income has grown at a 8.8% annualized rate over the last five years, slightly worse than the broader banking industry and in line with its total revenue.
3. EPS Barely Growing
Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.
Home Bancshares’s EPS grew at a weak 6.1% compounded annual growth rate over the last five years, lower than its 9% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
Home Bancshares isn’t a terrible business, but it isn’t one of our picks. With its shares trailing the market in recent months, the stock trades at 1.2× forward P/B (or $26.81 per share). This valuation is reasonable, but the company’s shakier fundamentals present too much downside risk. We're pretty confident there are more exciting stocks to buy at the moment. We’d recommend looking at an all-weather company that owns household favorite Taco Bell.
Stocks We Would Buy Instead of Home Bancshares
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