Is Access National Corporation (NASDAQ:ANCX) Undervalued After Accounting For Its Future Growth?

Looking at Access National Corporation’s (NASDAQ:ANCX) fundamentals some investors are wondering if its last closing price of $29.62 represents a good value for money for this high growth stock. Let’s look into this by assessing ANCX’s expected growth over the next few years. View out our latest analysis for Access National

>Where’s the growth?

The excitement around Access National’s growth potential is not unfounded. Expectations from 5 analysts are extremely bullish with earnings per share estimated to surge from current levels of $1.074 to $1.989 over the next three years. This results in an annual growth rate of 16.46%, on average, which indicates an exceedlingly positive future in the near term.

Is ANCX available at a good price after accounting for its growth?

Access National is available at price-to-earnings ratio of 27.58x, showing us it is overvalued based on current earnings compared to the banks industry average of 17x , and overvalued compared to the US market average ratio of 18.44x .

NasdaqGM:ANCX PE PEG Gauge June 23rd 18
NasdaqGM:ANCX PE PEG Gauge June 23rd 18

We understand ANCX seems to be overvalued based on its current earnings, compared to its industry peers. But, seeing as Access National is perceived as a high-growth stock, we must also account for its earnings growth, which is captured in the PEG ratio. A PE ratio of 27.58x and expected year-on-year earnings growth of 16.46% give Access National a higher PEG ratio of 1.68x. So, when we include the growth factor in our analysis, Access National appears a bit overvalued , based on fundamental analysis.

What this means for you:

ANCX’s current overvaluation could signal a potential selling opportunity to reduce your exposure to the stock, or it you’re a potential investor, now may not be the right time to buy. However, basing your investment decision off one metric alone is certainly not sufficient. There are many things I have not taken into account in this article and the PEG ratio is very one-dimensional. If you have not done so already, I highly recommend you to complete your research by taking a look at the following:

  1. Financial Health: Is ANCX’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  2. Past Track Record: Has ANCX been consistently performing well irrespective of the ups and downs in the market? Go into more detail in the past performance analysis and take a look at the free visual representations of ANCX’s historicals for more clarity.
  3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.