New Forecasts: Here's What Analysts Think The Future Holds For MetroCity Bankshares, Inc. (NASDAQ:MCBS)

MetroCity Bankshares, Inc. (NASDAQ:MCBS) shareholders will have a reason to smile today, with the analysts making substantial upgrades to this year's forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analysts modelling a real improvement in business performance.

Following the upgrade, the latest consensus from MetroCity Bankshares' three analysts is for revenues of US$110m in 2021, which would reflect a huge 22% improvement in sales compared to the last 12 months. Per-share earnings are expected to bounce 25% to US$1.77. Prior to this update, the analysts had been forecasting revenues of US$100m and earnings per share (EPS) of US$1.44 in 2021. There has definitely been an improvement in perception recently, with the analysts substantially increasing both their earnings and revenue estimates.

View our latest analysis for MetroCity Bankshares

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting MetroCity Bankshares' growth to accelerate, with the forecast 22% growth ranking favourably alongside historical growth of 14% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 6.3% next year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect MetroCity Bankshares to grow faster than the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that analysts upgraded their earnings per share estimates for this year, expecting improving business conditions. They also upgraded their revenue estimates for this year, and sales are expected to grow faster than the wider market. More bullish expectations could be a signal for investors to take a closer look at MetroCity Bankshares.

Even so, the longer term trajectory of the business is much more important for the value creation of shareholders. We have estimates - from multiple MetroCity Bankshares analysts - going out to 2022, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are upgrading their estimates. So you may also wish to search this free list of stocks that insiders are buying.

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This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
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