Since September 2025, S&T Bancorp has been in a holding pattern, posting a small return of 3.8% while floating around $40.14.
Is there a buying opportunity in S&T Bancorp, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free.
Why Is S&T Bancorp Not Exciting?
We're cautious about S&T Bancorp. Here are three reasons we avoid STBA and a stock we'd rather own.
1. 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.
S&T Bancorp’s net interest income has grown at a 7% annualized rate over the last five years, worse than the broader banking industry.
2. Projected Net Interest Income Growth Is Slim
Forecasted net interest income by Wall Street analysts signals a company’s potential. Predictions may not always be accurate, but accelerating growth typically boosts valuation multiples and stock prices while slowing growth does the opposite.
Over the next 12 months, sell-side analysts expect S&T Bancorp’s net interest income to drop by 5.3%, a decrease from its 5.9% annualized growth for the past two years. This projection is below its 5.9% annualized growth rate for the past two years.
3. EPS Took a Dip Over the Last Two Years
While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business.
Sadly for S&T Bancorp, its EPS declined by 3.3% annually over the last two years while its revenue was flat. This tells us the company struggled to adjust to choppy demand.
Final Judgment
S&T Bancorp’s business quality ultimately falls short of our standards. That said, the stock currently trades at 1× forward P/B (or $40.14 per share). While this valuation is reasonable, we don’t really see a big opportunity at the moment. We're pretty confident there are superior stocks to buy right now. We’d recommend looking at the most entrenched endpoint security platform on the market.
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