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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#2247
Positioning
Market Dominance
Finance, Insurance, And Real Estate
Banking
$440M
Litz H. van Dyke
Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust. It accepts various deposit products, including checking, savings, retirement, and money market accounts. The company also originates and holds fixed and variable rate mortgage loans. It operates through 69 branches in Virginia and North Carolina.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = CARE ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$SII SPROTT INC. | 75 | 91 | 87 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PUK PRUDENTIAL PLC | 73 | 88 | 97 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NMR NOMURA HOLDINGS INC | 72 | 81 | 92 | 87 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PSLV Sprott Physical Silver Trust | 69 | 82 | 80 | 98 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UFCS UNITED FIRE GROUP INC | 68 | 81 | 93 | 76 | 5.0x | 3.5x | 13.2% | 4.1% | 99.9% | 14.7% | 11.1% | 9.2% | 2.1% | 16.0x | $775M | VS | |
$SLF SUN LIFE FINANCIAL INC | 68 | 83 | 95 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CBOE Cboe Global Markets, Inc. | 68 | 75 | 63 | 77 | 21.3x | 15.7x | 24.0% | 13.7% | 41.7% | 32.4% | 26.4% | 8.2% | 1.1% | 30.0x | $25.7B | VS | |
$VTMX Vesta Real Estate Corporation, S.A.B. de C.V. | 67 | 69 | 77 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$PHYS Sprott Physical Gold Trust | 67 | 64 | 82 | 91 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GLDM World Gold Trust | 66 | 54 | 85 | 92 | 11.3x | 11.3x | - | 20.9% | 100.0% | 97.1% | 554.8% | -19.0% | 0.0% | - | $32.0B | VS | |
$CARE Carter Bankshares, Inc. | 49 | 30 | 33 | 73 | 17.0x | 13.4x | 6.9% | 0.6% | 0.0% | 15.7% | 12.5% | 8.4% | 0.0% | 1072.0x | $440M | ||
| SECTOR BENCH | - | - | - | - | - | 11.9x | 7.8x | 9.0% | 1.3% | 77.7% | 18.1% | 21.9% | 10.7% | 2.0% | 0.5x | - | REF |
Carter Bankshares, Inc. (CARE) receives a "Reduce" rating with a composite score of 48.5/100. It ranks #2247 out of 7,333 stocks in our coverage universe and carries a 2-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Expensive relative to fundamentals — limited margin of safety
Weak fundamentals — higher risk of value trap
Average volatility — neutral timing signal
Moderate investment profile
Mid-range overall rating
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Relative valuation derived from Finance, Insurance, And Real Estate sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for CARE.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 30 | 34 | -4NEUTRAL |
| MOMENTUM | 73 | 82 | -9DRAG |
| VALUATION | 33 | 30 | +3NEUTRAL |
| INVESTMENT | 38 | 70 | -32DRAG |
| STABILITY | 58 | 63 | -5NEUTRAL |
| SHORT INT | 22 | 8 | +14ALPHA |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROIC 8.2% vs WACC 10.2% (spread -2.0%)
GM 0% vs sector 78%, OM 16% vs sector 18%
Capital turnover 0.86x
Rev growth 8%, 5yr history
Interest coverage 0.3x, Net debt/EBITDA 9.6x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Carter Bankshares, Inc. (CARE) as a Reduce with a composite score of 48.5/100 at a current price of $21.03. The quantitative profile shows weakness across multiple dimensions, suggesting limited upside potential.
Carter Bankshares, Inc. holds a top-quartile position (#0 of 50) within the Finance, Insurance, And Real Estate sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 48.5/100 places it at rank #2247 in our full universe.
The near-term outlook is constructive, with revenue growing at 8% and momentum in the 73th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
No Moat
Medium
Poor
Fair Value
Positive momentum indicates institutional accumulation.
Stable competitive position in a defensive sector.
Leverage of 1072% D/E amplifies downside risk.
Below-average quality raises earnings sustainability concerns.
Vulnerability to macroeconomic shocks and interest rate volatility.
Carter Bankshares, Inc. represents a reduce based on multi-factor quantitative performance.
Carter Bankshares, Inc. receives a Reduce rating from our analysis, with a composite score of 48.5/100 and 2 out of 5 stars, ranking #2247 out of 7,333 stocks. CARE's factor profile shows weakness across multiple dimensions, suggesting the stock may underperform going forward. Existing holders may want to consider trimming positions or tightening stop-losses.
CARE's quality score of 30/100 is below average, suggesting challenges with profitability or capital efficiency. The company reports a return on equity of 6.9% (sector avg: 9.0%), gross margins of 0.0% (sector avg: 77.7%), net margins of 12.5% (sector avg: 21.9%). Investors should examine whether management is actively addressing these weaknesses or if they reflect structural industry headwinds.
With a value score of 33/100, CARE appears somewhat expensive relative to its fundamentals. Key valuation metrics include a P/E ratio of 16.96x, an EV/EBITDA of 13.45x, a P/B ratio of 1.17x. Investors paying a premium here are likely betting on above-average growth or margin expansion to justify current prices.
Carter Bankshares, Inc.'s investment score of 38/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 8.4% vs. a sector average of 10.7% and a return on assets of 0.6% (sector: 1.3%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
CARE shows strong momentum characteristics with a score of 73/100. The stock has been trending above key moving averages, indicating solid demand from institutional buyers. Revenue growth stands at 8.4% year-over-year, while a beta of 0.73 reflects its sensitivity to broader market moves. This level of momentum typically signals sustained investor confidence and favorable near-term price action.
With a stability score of 58/100, CARE exhibits average financial resilience. Key stability metrics include a beta of 0.73 and a debt-to-equity ratio of 1072.00x (sector avg: 0.5x). While the balance sheet is not a major concern, the stock is subject to typical market volatility and may experience sharper drawdowns during risk-off episodes.
Carter Bankshares, Inc.'s short interest score of 22/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 1072.00x), small-cap liquidity risk. At $440M (small-cap), CARE carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
Carter Bankshares, Inc. is a small-cap company in the Finance, Insurance, And Real Estate sector, ranked #0 of 50 in its sector (100th percentile) and #2247 of 7,333 overall (69th percentile). Key comparisons include ROE of 6.9% trailing the 9.0% sector median and operating margins of 15.7% below the 18.1% sector average. This top-quartile standing reflects exceptional competitive strength relative to Finance, Insurance, And Real Estate peers.
While CARE currently exhibits a REDUCE profile, superior opportunities exist within the FINANCE, INSURANCE, AND REAL ESTATE sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Finance, Insurance, And Real Estate Alpha →Quant Factor Profile
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Improvement in Short Int. (22) would have the largest impact on the composite score.
EV/EBITDA 73% ABOVE SECTOR MEDIAN
ROE 23% BELOW SECTOR MEDIAN
Gross Margin 100% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
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Last week, our time-tested methodologies served investors well in navigating the market. Check out some of our achievements from the past three months.

Carter Bankshares (CARE) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock doesn't suggest further strength down the road.

Carter Bankshares (CARE) shares have started gaining and might continue moving higher in the near term, as indicated by solid earnings estimate revisions.

The mean of analysts' price targets for Carter Bankshares (CARE) points to a 28.9% upside in the stock. While this highly sought-after metric has not proven reasonably effective, strong agreement among analysts in raising earnings estimates does indicate an upside in the stock.