First Bancorp's Earnings Momentum and Strong Buy Upgrade: A Compelling Near-Term Investment Opportunity

First Bancorp (FBNC) has emerged as a standout performer in the banking sector, driven by a confluence of robust earnings momentum, a Zacks Rank upgrade to #1 (Strong Buy), and surging institutional confidence. These factors collectively present a compelling near-term buying opportunity for investors seeking exposure to a well-positioned financial services firm.

Earnings Momentum: A Catalyst for Growth

First Bancorp’s earnings trajectory has been nothing short of impressive. Analysts now forecast a 25.3% year-over-year (YoY) earnings per share (EPS) growth rate for 2025, with a consensus estimate of $3.47 per share [1]. This follows a 6.2% upward revision in earnings estimates, reflecting heightened optimism about the company’s operational resilience and strategic execution [2]. The most recent quarterly results underscore this momentum: FBNC reported $0.93 EPS for Q2 2025, exceeding the $0.88 consensus estimate by 5.68% [3]. Over the past 12 months, the company has outperformed EPS estimates in 50% of its reporting periods, a testament to its consistent ability to exceed expectations [4].

The Zacks Earnings Surprise Prediction (ESP) for FBNC stands at +3.60%, indicating that analysts are increasingly bullish on its ability to outperform in the near term [5]. This confidence is further reinforced by the company’s net interest margin (NIM), which expanded to 2.52% in Q2 2025, a 31-basis-point improvement year-over-year [6]. Such margin expansion, coupled with disciplined cost management, positions FBNC to sustain its earnings growth trajectory.

Institutional Confidence: A Vote of Confidence

Institutional investors have been active participants in FBNC’s recent rally, with their collective ownership rising to 69.46% as of July 2025 [7]. This surge in institutional interest is not merely speculative—it reflects a strategic reallocation of capital toward high-conviction names. For instance, Ameriprise Financial Inc. increased its stake by 13.0%, now holding 884,572 shares valued at $39 million [8]. Similarly, Squarepoint Ops LLC boosted its position by 110.7%, acquiring 15,423 shares in a single quarter [9]. These moves signal that institutional investors view FBNC as a defensive yet growth-oriented play in a volatile market.

While some institutions, like Westwood Holdings Group Inc., have trimmed their positions, the overall trend remains net positive. The net interest income and margin improvements reported by FBNC in Q2 2025 have likely reassured institutional investors about the company’s ability to navigate macroeconomic headwinds [10]. This confidence is further validated by the Zacks Rank upgrades, which have elevated FBNC to the top 20% of the Zacks universe [11].

Why This Is a Near-Term Buying Opportunity

The alignment of earnings momentum and institutional confidence creates a rare convergence of fundamental and market-driven catalysts. The 25.3% YoY EPS growth forecast implies that FBNC is on track to deliver returns that significantly outpace broader market averages. Meanwhile, the 6.2% increase in earnings estimates suggests that the market is beginning to price in this growth, but not yet fully. For investors, this represents a window to capitalize on undervaluation before broader adoption drives up the stock price.

Institutional buying trends add another layer of conviction. Historically, institutional investors have a track record of outperforming retail investors in identifying undervalued stocks, and their recent activity in FBNC underscores this dynamic. The fact that FBNC has been upgraded to a Zacks Rank #1 (Strong Buy) on two separate occasions—April 25 and August 15, 2025—further reinforces the urgency of the opportunity [12].

Conclusion

First Bancorp’s combination of earnings outperformance, margin expansion, and institutional backing makes it a standout candidate for near-term investment. The Zacks Rank upgrades and analyst consensus estimates provide a clear roadmap for growth, while institutional buying trends validate the stock’s appeal to sophisticated investors. For those seeking a high-conviction play in the financial sector, FBNC offers a compelling case to act now.

Source:
[1] First Bancorp (FBNC) Surpasses Q2 Earnings and Revenue Estimates [https://www.nasdaq.com/articles/first-bancorp-fbnc-surpasses-q2-earnings-and-revenue-estimates]
[2] First Bancorp (FBNC) Upgraded to Strong Buy: Here's What You Should Know [https://finviz.com/news/70639/first-bancorp-fbnc-upgraded-to-strong-buy-heres-what-you-should-know]
[3] First Bancorp (NASDAQ:FBNC) Hits New 1-Year High [https://www.marketbeat.com/instant-alerts/first-bancorp-nasdaqfbnc-sets-new-1-year-high-whats-next-2025-08-28/]
[4] First Bancorp (FBNC) Stock Forecast & Price Target [https://www.tipranks.com/stocks/fbnc/forecast]
[5] First Bancorp (FBNC) Could Be a Great Choice [https://www.zacks.com/stock/news/2639354/first-bancorp-fbp-could-be-a-great-choice]
[6] The First Bancorp Announces Second Quarter Results [https://investors.thefirst.com/news/news-details/2025/The-First-Bancorp-Announces-Second-Quarter-Results/default.aspx]
[7] First Bancorp (FBNC) Institutional Ownership 2025 [https://www.marketbeat.com/stocks/NASDAQ/FBNC/institutional-ownership/]
[8] First Bancorp (FBNC) Institutional Ownership 2025 [https://www.marketbeat.com/stocks/NASDAQ/FBNC/institutional-ownership/]
[9] First Bancorp (FBNC) Upgraded at Zacks Research [https://www.marketbeat.com/instant-alerts/first-bancorp-nasdaqfbnc-stock-rating-upgraded-by-zacks-research-2025-08-15/]
[10] First Bancorp Common Stock (FBNC) Institutional Holdings [https://www.nasdaq.com/market-activity/stocks/fbnc/institutional-holdings]
[11] All You Need to Know About First Bancorp (FBNC) Rating Upgrade to Buy [https://www.zacks.com/stock/news/2456083/all-you-need-to-know-about-first-bancorp-fbnc-rating-upgrade-to-buy]
[12] First Bancorp (FBNC) Upgraded to Strong Buy [https://www.zacks.com/stock/news/2479823/first-bancorp-fbnc-upgraded-to-strong-buy-heres-what-you-should-know]