A fresh look at Bank OZK (OZK)’s valuation after its recent 6% rebound in share price

Bank OZK (OZK) has quietly outpaced many regional peers this month, with shares climbing about 6% even as the past 3 months remain negative. That mix sets up an interesting value conversation.

See our latest analysis for Bank OZK.

Zooming out, Bank OZK’s roughly 6% 1 month share price return comes after a tougher quarter. However, its 7.8% year to date share price gain and solid multi year total shareholder returns suggest momentum is rebuilding rather than rolling over.

If Bank OZK’s renewed momentum has you thinking about what else might be setting up for a similar run, it is worth exploring fast growing stocks with high insider ownership as a fresh hunting ground.

With shares still trading below analyst targets despite steady profits and long term outperformance, is Bank OZK an underappreciated value story? Or is the recent rebound proof that markets are already pricing in its next leg of growth?

Most Popular Narrative: 13.7% Undervalued

With Bank OZK recently closing at $47.26 versus an estimated fair value near the mid 50 dollar range, the most popular narrative sees room for upside and ties that view to a shifting macro and business mix.

Improving industry conditions, including a steepening yield curve and lower short end rates, are seen as a favorable macro backdrop that could unlock earnings growth and support a higher valuation.

Despite some credit migration, overall credit trends are described as resilient, helping to underpin confidence in forward earnings and book value protection.

Read the complete narrative.

Want to see how modest growth assumptions, steady margins, and a re rated earnings multiple combine into that upside case? The full narrative lays out the exact profit path, the expected valuation reset, and the time frame analysts believe it all comes together.

Result: Fair Value of $54.78 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, concentrated commercial real estate exposure and larger than expected RESG repayments could pressure earnings and delay the hoped for re rating story.

Find out about the key risks to this Bank OZK narrative.

Build Your Own Bank OZK Narrative

If you see the story differently or want to dig into the numbers yourself, you can build a custom view in just minutes: Do it your way.

A good starting point is our analysis highlighting 4 key rewards investors are optimistic about regarding Bank OZK.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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