---
title: "Here's Why Commerce Bancshares Stock is a Must Buy Now"
description: "Commerce Bancshares, Inc. (NASDAQ: CBSH) is positioned for growth due to increased loan demand, high interest rates, and a strong balance sheet strategy. With projected earnings growth of 4.8% in 2024"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/212296860.md"
published_at: "2024-08-22T19:40:13.000Z"
---

# Here's Why Commerce Bancshares Stock is a Must Buy Now

> Commerce Bancshares, Inc. (NASDAQ: CBSH) is positioned for growth due to increased loan demand, high interest rates, and a strong balance sheet strategy. With projected earnings growth of 4.8% in 2024 and a Zacks Rank #1 (Strong Buy), shares have gained 16.2% year-to-date. The company's revenues have grown at a CAGR of 3.5% over the last five years, and its robust balance sheet supports capital distributions. The Return on Equity stands at 16.5%, outperforming the industry's 10.9%. Overall, CBSH presents a compelling investment opportunity.

**Commerce Bancshares, Inc.** CBSH is well-positioned for growth, given the decent loan demand, high interest rates and its balance sheet repositioning strategy. Moreover, solid liquidity and non-interest income growth will further support its financials.

Over the past week, the Zacks Consensus Estimate for both 2024 and 2025 earnings has moved marginally upward to $3.94 and $3.89, respectively. CBSH currently sports a Zacks Rank #1 (Strong Buy).

Year to date, shares of Commerce Bancshares have gained 16.2%, outperforming the industry's growth of 9.2%.

Image Source: Zacks Investment Research

## What Makes the Stock Worth Betting on

**Earnings Growth:** Commerce Bancshares witnessed earnings growth of 8.9% over the past three to five years. This was driven by the company's organic growth strategy, solid customer relationships and strong risk management.

Our projections for earnings indicate a 4.8%, 1% and 6% rise in 2024, 2025 and 2026, respectively.

**Revenue Strength:** Driven by growth in loan demand and fee income, Commerce Bancshares' total revenues witnessed a compound annual growth rate (CAGR) of 3.5% over the last five years (2018-2023). The trend continued in the first half of 2024 as well. Organic growth measures and a high-interest-rate scenario are likely to support top-line expansion, though rising funding costs will weigh on it to some extent.

Further, its balance sheet repositioning strategy is likely to boost net interest income through the sale of debt securities and reinvesting the proceeds at higher yields.

Our estimates for total revenues indicate 3.6%, 1.4% and 1.9% growth in 2024, 2025 and 2026, respectively.

**Strong Balance Sheet:** As of Jun 30, 2024, CBSH's total cash and cash equivalents (consisting of cash and due from banks and interest-earning deposits with banks) were $2.5 billion. Total debt (comprising other liabilities and other borrowings) was $580.4 million. Also, the company maintains investment grade ratings of A- and a stable outlook from Standard & Poor's. Hence, a solid liquidity position allows the company to address its near-term obligations.

**Impressive Capital Distributions:** Commerce Bancshares' capital distribution activities are encouraging. The company has been paying a 5% stock dividend over the past 25 years, with the most recent one announced in December 2023. The company has been consistently paying quarterly cash dividends and has a share repurchase plan in place. As of Jun 30, 2024, roughly 4.3 million shares remained available under the authorization.

Given its decent earnings strength and strong liquidity position, the company is expected to continue efficient capital distributions, thus enhancing shareholder value.

**Superior Return on Equity (ROE):** CBSH's trailing 12-month ROE reflects its superiority in terms of utilizing shareholders' funds. The company's ROE of 16.5% compares favorably with 10.9% of the industry.

### Other Bank Stocks to Consider

Some other top-ranked stocks from the banking space worth a look are **1st Source Corporation** SRCE and **Farmers National Banc Corp.** FMNB, each sporting a Zacks Rank #1 at present.

The Zacks Consensus Estimate for SRCE's current-year earnings has moved 10.7% north over the past 30 days. Shares of the company have gained 17.1% in the past six months.

The Zacks Consensus Estimate for FMNB's 2024 earnings has moved 3.8% upward in the past month. Over the past six months, shares of the company have risen 7.5%.

To read this article on Zacks.com click here.

### Related Stocks

- [CBSH.US - Commerce Bancshares](https://longbridge.com/en/quote/CBSH.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 科默斯银行｜8-K：2025 财年 Q4 营收 4.49 亿美元 |  | [Link](https://longbridge.com/en/news/273386233.md) |
| 科默斯银行（CBSH）宣布每股派发 0.2750 美元的股息 | Commerce Bancshares Inc. (NASDAQ:CBSH) 宣布每股季度股息为 0.2750 美元，比之前的 0.2620 美元增加了 5%。该公告于 2 月 6 日发布，CBSH 被认为是 2026 年值得购买的 10  | [Link](https://longbridge.com/en/news/276069935.md) |
| 科默斯银行称 2025 年将是创纪录的一年，完成了 FineMark 交易，并关注 2026 年的增长和净息差压力 | 科默斯银行首席财务官 Chuck Kim 宣布，预计 2025 年将成为该银行的 “创纪录年份”，这得益于成功收购 FineMark。该银行报告了创纪录的收益和每股收益增长，成功归因于其低成本的存款基础和强劲的手续费收入。Kim 强调了 F | [Link](https://longbridge.com/en/news/275519465.md) |
| 科默斯银行首席执行官 John W. Kemper 报告出售普通股 | 科默斯银行（Commerce Bancshares Inc.）的总裁兼首席执行官约翰·W·肯珀（John W. Kemper）已报告出售该公司的普通股。完整的文件可通过提供的链接获取。此新闻简报由公共技术（Public Technologi | [Link](https://longbridge.com/en/news/275360042.md) |
| 科默斯银行公布了 2026 年的新高管薪酬计划 | Commerce Bancshares Inc. 已批准一项新的高管薪酬计划，计划于 2026 年 3 月 28 日生效。首席执行官 John W. Kemper 将获得 1,050,000 美元的基于业绩的奖金和价值 2,313,108  | [Link](https://longbridge.com/en/news/275352077.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.
