Based on WSFS Financial Corporation's (NASDAQ:WSFS) earnings update in December 2018, analysts seem cautiously bearish, with earnings expected to grow by 1.1% in the upcoming year compared with the higher past 5-year average growth rate of 15%. By 2020, we can expect WSFS Financial’s bottom line to reach US$136m, a jump from the current trailing-twelve-month of US$135m. Below is a brief commentary on the longer term outlook the market has for WSFS Financial. For those interested in more of an analysis of the company, you can research its fundamentals here.
How will WSFS Financial perform in the near future?
The view from 5 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To understand the overall trajectory of WSFS's earnings growth over these next fews years, I've fitted a line through these analyst earnings forecast to determine an annual growth rate from the slope.
By 2022, WSFS's earnings should reach US$239m, from current levels of US$135m, resulting in an annual growth rate of 22%. This leads to an EPS of $4.48 in the final year of projections relative to the current EPS of $4.27. With a current profit margin of 34%, this movement will result in a margin of 46% by 2022.
Future outlook is only one aspect when you're building an investment case for a stock. For WSFS Financial, I've compiled three relevant factors you should further research:
- 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.
- Valuation: What is WSFS Financial 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 WSFS Financial is currently mispriced by the market.
- Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of WSFS Financial? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.