Eagle Bancorp, Inc. (NASDAQ:EGBN), operating in the financial services industry based in United States, saw a decent share price growth in the teens level on the NasdaqCM over the last few months. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Let’s examine Eagle Bancorp’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.
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What is Eagle Bancorp worth?
The stock seems fairly valued at the moment according to my valuation model. It’s trading around 0.46% above my intrinsic value, which means if you buy Eagle Bancorp today, you’d be paying a relatively fair price for it. And if you believe that the stock is really worth $53.9, then there isn’t really any room for the share price grow beyond what it’s currently trading. Furthermore, Eagle Bancorp’s low beta implies that the stock is less volatile than the wider market.
Can we expect growth from Eagle Bancorp?
Investors looking for growth in their portfolio may want to consider the prospects of a company before buying its shares. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company’s future expectations. Eagle Bancorp’s earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value.
What this means for you:
Are you a shareholder? EGBN’s optimistic future growth appears to have been factored into the current share price, with shares trading around its fair value. However, there are also other important factors which we haven’t considered today, such as the track record of its management team. Have these factors changed since the last time you looked at the stock? Will you have enough confidence to invest in the company should the price drop below its fair value?
Are you a potential investor? If you’ve been keeping an eye on EGBN, now may not be the most advantageous time to buy, given it is trading around its fair value. However, the optimistic prospect is encouraging for the company, which means it’s worth further examining other factors such as the strength of its balance sheet, in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Eagle Bancorp. You can find everything you need to know about Eagle Bancorp in the latest infographic research report. If you are no longer interested in Eagle Bancorp, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see past 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. For errors that warrant correction please contact the editor at firstname.lastname@example.org.