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Fundamental Analysis: Eagle Bancorp, Inc. (NASDAQ:EGBN)
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We look at Eagle Bancorp, Inc. (NASDAQ:EGBN) a company in the Regional – Mid-Atlantic Banks industry currently at the attention of investors, to assess if it provides value for investors considering buying or selling it. Currently Eagle Bancorp, Inc. is trading at $43.18 after moving up 1.46% in the previous day of trading. [Trend Analysis]
EGBN is trading with a trailing 12 month P/E multiple of 16.90 and an estimated forward P/E multiple of 1.72. The stock has an estimated 5 year annual growth of 0.39% and a PEG multiple of 43.18.
Rather than the usual Price to Earnings (P/E) multiple method, we use a slightly different method to assess if Eagle Bancorp, Inc. is potentially a value buy for investors, the PEG ratio (P/E to growth). This PEG multiple takes into account the expected long term growth in earnings of the company rather than merely the growth for one earnings period ahead as forward P/E does.
That is to say, P/E simply doesn’t account for the long term prospects of EGBN. As a rule of thumb, a stock with a PEG of between 0 and 1 is usually considered to be underpriced, between 1 and 2 to be at fair value and over 2 to be overpriced. Based on the PEG ratio of EGBN being 43.18, we consider Eagle Bancorp, Inc. to likely be overpriced.
This analysis means that value buyers who do not currently hold Eagle Bancorp, Inc. (NASDAQ:EGBN) should not consider buying and investors currently holding the stock should consider selling.
The mean analyst 12 month target price for Eagle Bancorp, Inc. (NASDAQ:EGBN) is currently $42.50 or 1.57% below the current price. Additionally, the stock has been as high as $43.44 and as low as $30.94 in the last 52 weeks. Analysts are estimating that EGBN will report earnings per share of $0.59 next quarter.