Howard Bancorp Inc (NASDAQ:HBMD)’s impressive earnings growth per share is expected to be a big double-digit 87.02% over the next three years. With the recent EPS being $0.775, expected growth will push the upcoming EPS to $1.448. 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 Howard Bancorp
What can we expect from Howard Bancorp Inc (NASDAQ:HBMD) in the future?
Analysts are predicting good growth prospects for Howard Bancorp over the next couple of years. Expectation of stock’s 2 analysts is high, with earnings expected to rise from today’s level of $0.775 to $1.448 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 87.02% 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 $6M to $12M in the next couple of years, roughly staying around the same level. However, margins look rather unappealing at the current levels of revenue and earnings.
Is the growth built on solid basis?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is highly excessive or whether the company has consistently exhibited strength. HBMD’s earnings growth in the last five years was a weaker 17.82%, 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 HBMD, I’ve compiled three pertinent factors you should look at:
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 HBMD’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 HBMD? 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.