Allegiance Bancshares Inc (NASDAQ:ABTX) is predicted to grow its earnings per share by a high double-digit 64.14% over the next three years. At a current EPS of $1.747, this growth rate means shareholders can expect an impending EPS of $2.867. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. Check out our latest analysis for Allegiance Bancshares
What can we expect from Allegiance Bancshares Inc (NASDAQ:ABTX) in the future?
Analysts are predicting good growth prospects for Allegiance Bancshares over the next couple of years. Expectation of stock’s 3 analysts is high, with earnings expected to rise from today’s level of $1.747 to $2.867 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 64.14% over the next few years, which is an optimistic outlook in the near term. In the same period and profits (net income) are predicted to grow from $23M to $37M 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 an insightful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. ABTX’s earnings growth in the last five years was a low 11.99%, indicating a relatively more bullish outlook for the company in the near future. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
For ABTX, I’ve put together three essential aspects 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. Management:Have insiders been ramping up their shares to take advantage of the market’s sentiment for ABTX’s future outlook? Check out our management and board analysis with insights on CEO compensation and governance factors.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ABTX? 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.