Ameris Bancorp (NASDAQ:ABCB)’s sound earnings growth per share is expected to be a double-digit 44.32% over the next three years. Presently, with an EPS of $2.355, we can expect an upcoming EPS of $3.398. I am going to look at the latest data on ABCB to assess whether this expected growth is reasonable. Check out our latest analysis for Ameris Bancorp
How is ABCB going to perform in the future?
Analyst expectation from the stock’s 5 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $2.355 to $3.398 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 44.32% over the next few years. In the same period and profits (net income) are predicted to slightly grow from $84M to $121M in the next couple of years, roughly staying around the same level. Though, at the current levels of revenue and profit, margins are certainly underwhelming.
Basis for the growth
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is excessive or whether the company continues to go from strength to strength. ABCB’s earnings growth the past couple of years was 29.91% which indicates that the company’s past performance is supportive of a strong continuation. This means ABCB has already proven its capacity to grow at an elevated rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth going forward.
For ABCB, there are three pertinent factors you should further research:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is ABCB worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ABCB is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ABCB? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.