In This Article:
In December 2017, Pinnacle Financial Partners Inc (NASDAQ:PNFP) released its most recent earnings announcement, which suggested that the company experienced a robust tailwind, leading to a double-digit earnings growth of 36.75%. Below, I’ve presented key growth figures on how market analysts view Pinnacle Financial Partners’s earnings growth trajectory over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for Pinnacle Financial Partners
Analysts’ outlook for the upcoming year seems buoyant, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally generating US$422.78M in 2021.
While it is informative understanding the growth rate each year relative to today’s value, it may be more valuable evaluating the rate at which the company is growing on average every year. The advantage of this technique is that we can get a better picture of the direction of Pinnacle Financial Partners’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through analyst consensus of forecasted earnings. The slope of this line is the rate of earnings growth, which in this case is 22.71%. This means that, we can assume Pinnacle Financial Partners will grow its earnings by 22.71% every year for the next few years.
Next Steps:
For Pinnacle Financial Partners, there are three essential aspects you should further examine:
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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.
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Valuation: What is PNFP 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 PNFP is currently mispriced by the market.
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Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of PNFP? 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.