While the broader market has struggled with the S&P 500 down 1.3% since September 2025, QCR Holdings has surged ahead as its stock price has climbed by 9.3% to $83.90 per share. This was partly thanks to its solid quarterly results, and the run-up might have investors contemplating their next move.
Is there a buying opportunity in QCR Holdings, or does it present a risk to your portfolio? Get the full stock story straight from our expert analysts, it’s free.
Why Is QCR Holdings Not Exciting?
We’re happy investors have made money, but we're swiping left on QCR Holdings for now. Here are three reasons we avoid QCRH and a stock we'd rather own.
1. Long-Term Revenue Growth Disappoints
Net interest income and fee-based revenue are the two pillars supporting bank earnings. The former captures profit from the gap between lending rates and deposit costs, while the latter encompasses charges for banking services, credit products, wealth management, and trading activities.
Over the last five years, QCR Holdings grew its revenue at a tepid 7.5% compounded annual growth rate. This fell short of our benchmark for the banking sector.
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 QCR Holdings’s net interest income to drop by 10.8%, a decrease from its 18.8% annualized growth for the past two years. This projection is below its 18.8% annualized growth rate for the past two years.
3. Recent EPS Growth Below Our Standards
Although long-term earnings trends give us the big picture, we like to analyze EPS over a shorter period to see if we are missing a change in the business.
QCR Holdings’s EPS grew at a weak 5.8% compounded annual growth rate over the last two years. On the bright side, this performance was higher than its 3.7% annualized revenue growth and tells us the company became more profitable on a per-share basis as it expanded.
Final Judgment
QCR Holdings isn’t a terrible business, but it isn’t one of our picks. With its shares topping the market in recent months, the stock trades at 1.1× forward P/B (or $83.90 per share). This valuation multiple is fair, but we don’t have much faith in the company. We're fairly confident there are better investments elsewhere. Let us point you toward one of our top digital advertising picks.
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