Dime Community Bancshares Inc (NASDAQ:DCOM) is expected to deliver an impressive 76.34% in earnings growth per share over the next three years. Presently, with an EPS of $0.924, we can expect an upcoming EPS of $1.629. To assess the reasonability of DCOM’s earnings growth per share, we should look at its most recent growth rate delivered. See our latest analysis for DCOM
How is Dime Community Bancshares going to perform in the future?
Analysts are predicting good growth prospects for Dime Community Bancshares over the next couple of years. Expectation based on 3 analysts is strong, with earnings estimated to increase from current levels of $0.924 to $1.629 over the next couple of years. This indicates a relatively solid earnings per share growth rate of 76.34% over the next few years, which is an optimistic outlook in the near term. In the same period and profit is predicted to rise from $34M to $60M 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 an insightful 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. DCOM’s earnings growth in the last five years was a unexciting 3.98%, 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 DCOM, I’ve put together three relevant 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 DCOM 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 DCOM is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of DCOM? 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.