Park National Corporation (PRK): Immense Growth Potential?
Park National Corporation (AMEX:PRK)’s sound earnings growth per share is expected to be a double-digit 13.35% over the next three years. At a current EPS of $5.663, this growth rate means shareholders can expect an impending EPS of $6.419. Today I will look at the latest data in order to investigate whether this expected growth rate is plausible. View our latest analysis for Park National
Exciting times ahead?
Analyst expectation from the stock’s 4 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $5.663 to $6.419 over the next couple of years. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 13.35% over the next few years. In the same period and profit is predicted to slightly grow from $87M to $98M 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 a great indicator for future performance for a stock. We can determine whether this level of expected growth is illustrative of future headwinds or whether the company continues to grapple with higher growth. PRK’s earnings growth in the last five years was a low 5.36%, indicating a relatively more upbeat attitude towards the company in the upcoming year. This belief may be supported by turnaround initiatives implemented in the past, or previous investments coming to fruition.
Next Steps:
For PRK, I’ve compiled three pertinent aspects you should further examine:
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 PRK 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 PRK is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of PRK? 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.
