US Bancorp (NYSE:USB) is expected to deliver a high single-digit 8.39% in earnings growth per share over the next year. With the recent EPS being $3.374, expected growth will push the upcoming EPS to $3.657. To determine whether this growth rate expectation is justified, we should take a look at how the company has been performing in the past. See our latest analysis for USB
How is USB going to perform in the future?
Analyst expectation from the stock’s 20 analysts is one of positive sentiment, with earnings estimated to expand from current levels of $3.374 to $3.657 over the next year. This indicates a relatively solid earnings per share growth rate of 8.39% over the next 1-2 years, which is an optimistic outlook in the near term. In the same period we will see the revenue grow from $19,835M $22,739M
Is this similar growth to the past?
The past can be a helpful 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. The company delivered a growth rate of 4.17% which is indicative of a sustained level of growth – no surprises there for shareholders. This gives us conviction in analysts’ expectations as USB has already illustrated their ability to grow at this rate.
Next Steps:
For USB, there are three relevant aspects 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 USB 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 USB is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of USB? 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.