Union Bankshares Corporation (NASDAQ:UBSH) is expected to deliver a solid 16.68% in earnings growth per share over the next year. Presently, with an EPS of $1.798, we can expect an upcoming EPS of $2.098. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. View our latest analysis for Union Bankshares
What can we expect from Union Bankshares Corporation (NASDAQ:UBSH) in the future?
UBSH is covered by 5 analysts who by consensus are expecting positive earnings, estimated to rise from current levels of $1.798 to $2.098 next year. This indicates a relatively solid earnings per share growth rate of 16.68% over the next 1-2 years, which is an optimistic outlook in the near term. In the same period we should see the revenue increase from $339M $477M and profit is predicted to slightly grow from $79M to $128M in upcoming year, roughly growing 1.6x. But, at this level of revenue and profit, margins are predicted to be extremely healthy as well.
Is this similar growth to the past?
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. UBSH’s earnings growth last year was a weaker rate of 6.47%, indicating a relatively more optimistic future painted for the company in the future. This belief may be supported by turnaround initiatives or previous investments coming to fruition.
For UBSH, I’ve put together three relevant 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. Valuation: What is UBSH 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 UBSH is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of UBSH? 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.