Dividend Darling With Upside: 1st Source Corporation (NASDAQ:SRCE)

If investors are looking for a stable dividend stock with upside, 1st Source Corporation (NASDAQ:SRCE) could be one that fits the bill.  The stock currently provides a dividend yield of 2.34% for the Financial company.  Sell-side analysts covering the shares are projecting that it will reach $50.67 within the next 12-18 months.  This is a solid upside to a recent tick of $46.16.  On a consensus basis, analysts have a Buy/Sell rating of 2.70, which is based on a 1 to 5 scale where 1 represents a Strong Buy and 5 a Strong Sell. Investors looking to make big gains in the equity market may be looking to fine tune an existing strategy or create a whole new one. It may sound quite easy, buy low and sell high. Obviously, navigating the stock market typically entails much more than that. Identifying market tops and correction levels may be very difficult. Of course, it always hurts to take a loss, but figuring out how to shrink losses can help keep the ship afloat during turbulent market conditions. The situation for the average investor may vary greatly from one person to the next. Some investors will be working with a short-term plan, while other may be focused on a longer-term investment horizon. Goals may also vary from individual to individual. Keeping these goals in sight may help clear up the sometimes foggy investing waters, and provide clarity for creating a winning portfolio. 

RECENT PERFORMANCE

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, 1st Source Corporation (NASDAQ:SRCE)’s stock was 14.43%.  Over the last week of the month, it was -0.52%, 8.46% over the last quarter, and  -9.47% for the past six months.

Over the past 50 days, 1st Source Corporation stock’s -7.47% off of the high and 10.23% removed from the low.  Their 52-Week High and Low are noted here.  -22.20% (High), 20.08%, (Low). 

FUNDAMENTAL ANALYSIS

Fundamental analysis examines the financial elements of a company, for example; sales, cash flow, profit and balance sheet.  These numbers are then crunched to create theoretical valuations of companies. 

Earnings Per Share (EPS) is the earnings made by a company divided by their number of shares.  EPS enables the earnings of a company to easily be compared to their competitors. The higher the number, the more profit per dollar is being made on investor capital.  1st Source Corporation’s EPS for the trailing 12 months is 3.12.  Their EPS should be compared to other companies in the Financial sector.

Price-to-Earnings Ratio is the current share price divided by annual earnings per share.  P/E provides a number that details how many years of earnings it will take a stock to recoup the value of one share at current price levels.  Easy to calculate and understand, P/E is an extremely common ratio that is used to compare valuations of stocks against each other relatively.  1st Source Corporation’s  P/E ratio is 14.78. 

Projected Earnings Growth (PEG) is a forward looking ratio based on anticipated earnings growth.  PEG is created by dividing P/E by the projected rate of earnings growth.  1st Source Corporation’s  PEG is 1.48.

TECHNICAL ANALYSIS

Technical analysts have little regard for the value of a company. They use historic price data to observe stock price patterns to predict the direction of that price going forward.  Analysts use common formulas and ratios to accomplish this.

1st Source Corporation (NASDAQ:SRCE)’s RSI (Relative Strength Index) is 52.03.  RSI is a technical indicator of price momentum, comparing the size of recent gains to the size of recent losses and establishes oversold and overbought positions.

Occasionally, investors may feel like they are riding on a wild roller coaster when dealing with the stock market. Controlling emotions when taking the ride may assist with making necessary decisions when the time comes. Many investors choose to do thorough research when purchasing any stock. Knowing what is owned and why it is owned may help ease the mind when things get sticky. When the market is riding high and there is generally smooth sailing on the investing seas, individual investors may have the tendency to get complacent. Being prepared for any situation may help ease the stress of big market decision making. There may be a time when it seems like everything is going off the rails, but having an actual game plan for management and recovery could make a huge difference both financially and psychologically.