PB:NYSEProsperity Bancshares, Inc. Analysis
Data as of 2026-06-03 - not real-time
$68.65
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
Prosperity Bancshares is trading very close to its 20‑day and 200‑day simple moving averages, with the RSI hovering around the neutral 50 mark, suggesting a market that is neither overbought nor oversold. Technical momentum is slightly bearish, as indicated by a MACD histogram that sits below the zero line and a decreasing volume trend, putting the stock near its identified support level of $65.90. The company posted a robust 19.9% year‑over‑year revenue increase and beat non‑GAAP earnings expectations in Q1 2026, while also completing two strategic mergers that should expand its footprint. Fundamentally, the stock appears undervalued, trading at a PE of 12.46 versus an industry average of 16.60 and a price‑to‑book below 1.0, while the DCF model suggests a fair value over $105. Dividend sustainability looks solid with a 3.47% yield and a payout ratio under 45%. Overall, the blend of solid earnings growth, attractive valuation, and a reliable dividend makes PB a compelling candidate for investors with a longer horizon, though short‑term technical signals advise caution.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- Bearish MACD histogram and decreasing volume
- Price near technical support level
- High dividend yield offering downside protection
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong 19.9% revenue growth and earnings beat
- Undervalued relative to peers and DCF fair value gap
- Recent mergers expanding market share and earnings base
Long Term
> 3 yearsPositive
Model confidence: 9/10
Key Factors
- Stable dividend with sustainable payout ratio
- Low beta indicating defensive characteristics
- Continued growth potential from acquisition pipeline and regional banking fundamentals
Key Metrics & Analysis
Financial Health
Revenue Growth19.90%
Profit Margin40.35%
P/E Ratio12.5
ROE6.73%
ROA1.28%
P/B Ratio0.8
Op. Cash Flow$556.5M
Industry P/E16.6
Technical Analysis
TrendNeutral
RSI50.2
Support$65.90
Resistance$70.79
MA 20$68.54
MA 50$68.39
MA 200$68.53
MACDBearish
VolumeDecreasing
Fear & Greed Index92.7
Valuation
Fair Value$105.81
Target Price$77.92
Upside/Downside13.51%
GradeUndervalued
TypeBlend
Dividend Yield3.47%
Risk Assessment
Beta0.73
Volatility18.96%
Sector RiskMedium
Reg. RiskMedium
Geo RiskLow
Currency RiskLow
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.