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Veritex Holdings (VBTX): Buy, Sell, or Hold Post Q2 Earnings?

By: StockStory

September 29, 2025 at 00:04 AM EDT

VBTX Cover Image

Over the past six months, Veritex Holdings has been a great trade, beating the S&P 500 by 17%. Its stock price has climbed to $33.78, representing a healthy 35.3% increase. This performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Veritex Holdings, or does it present a risk to your portfolio? Check out our in-depth research report to see what our analysts have to say, it’s free.

Why Is Veritex Holdings Not Exciting?

We’re glad investors have benefited from the price increase, but we don't have much confidence in Veritex Holdings. Here are three reasons we avoid VBTX and a stock we'd rather own.

1. Revenue Tumbling Downwards

Long-term growth is the most important, but within financials, a stretched historical view may miss recent interest rate changes and market returns. Veritex Holdings’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 2.9% over the last two years. Veritex Holdings Year-On-Year Revenue Growth Note: Quarters not shown were determined to be outliers, impacted by outsized investment gains/losses that are not indicative of the recurring fundamentals of the business.

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 Veritex Holdings’s net interest income to rise by 1.5%.

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 Veritex Holdings, its EPS declined by more than its revenue over the last two years, dropping 13.3%. This tells us the company struggled to adjust to shrinking demand.

Veritex Holdings Trailing 12-Month EPS (Non-GAAP)

Final Judgment

Veritex Holdings isn’t a terrible business, but it isn’t one of our picks. With its shares beating the market recently, the stock trades at 1.1× forward P/B (or $33.78 per share). Beauty is in the eye of the beholder, but we don’t really see a big opportunity at the moment. We're fairly confident there are better stocks to buy right now. Let us point you toward one of our top digital advertising picks.

Stocks We Like More Than Veritex Holdings

Donald Trump’s April 2025 "Liberation Day" tariffs sent markets into a tailspin, but stocks have since rebounded strongly, proving that knee-jerk reactions often create the best buying opportunities.

The smart money is already positioning for the next leg up. Don’t miss out on the recovery - check out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).

Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.

StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.

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