First Bancorp has had an impressive run over the past six months as its shares have beaten the S&P 500 by 7.7%. The stock now trades at $51.20, marking a 21% gain. This performance may have investors wondering how to approach the situation.
Is now the time to buy First Bancorp, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.
Why Is First Bancorp Not Exciting?
Despite the momentum, we're swiping left on First Bancorp for now. Here are three reasons we avoid FBNC and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
From lending activities to service fees, most banks build their revenue model around two income sources. Interest rate spreads between loans and deposits create the first stream, with the second coming from charges on everything from basic bank accounts to complex investment banking transactions.
Regrettably, First Bancorp’s revenue grew at a tepid 7.6% compounded annual growth rate over the last five years. This fell short of our benchmark for the banking sector.
3. EPS Barely Growing
We track the long-term change in earnings per share (EPS) because it highlights whether a company’s growth is profitable.
First Bancorp’s EPS grew at a weak 4.3% compounded annual growth rate over the last five years, lower than its 7.6% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded.
Final Judgment
First Bancorp’s business quality ultimately falls short of our standards. With its shares beating the market recently, the stock trades at 1.3× forward P/B (or $51.20 per share). Beauty is in the eye of the beholder, but our analysis shows the upside isn’t great compared to the potential downside. We're fairly confident there are better investments elsewhere. We’d recommend looking at one of our all-time favorite software stocks.
High-Quality Stocks for All Market Conditions
If your portfolio success hinges on just 4 stocks, your wealth is built on fragile ground. You have a small window to secure high-quality assets before the market widens and these prices disappear.
Don’t wait for the next volatility shock. Check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 244% over the last five years (as of June 30, 2025).
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Exlservice (+354% five-year return). Find your next big winner with StockStory today.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.