Going The Extra Mile: Stock With Track Record & Upside: Independent Bank Corporation (NASDAQ:IBCP)

Independent Bank Corporation (NASDAQ:IBCP) has been experiencing accelerated earnings and sales growth over the past five years.  Over that time frame the firm has seen earnings growth of 8.90% and sales growth of -0.20%.

One of the biggest downfalls of the individual investor is not being able to take losses when it becomes necessary. Of course nobody wants to take a loss, but the repercussions of not letting go of a losing stock can end up sealing the demise of the well-intentioned investor. Many professionals would probably agree that the pain of realizing a loss is more intense than the joy of picking a winner. Investors who become reluctant to sell losers may be delaying the inevitable and essentially suffocating the portfolio. Not addressing the losing side can have severe negative effects on the long-term health of the portfolio. Investors may have to find a way to face the music and sell when they realize that a trade has gone sour.

While the firm has enjoyed the upward movement, it’s important to look at analyst expectations and where the company is headed from here.  On a consensus basis, analysts are projecting EPS growth of 17.06% for next year and have a $27.50 one year price target on the stock.   The stock recently traded at $24.45.

Let’s take a look at how the stock has been performing recently.  Over the past twelve months, Independent Bank Corporation (NASDAQ:IBCP)‘s stock was 9.40%.  Over the last week of the month, it was -2.59%, -5.60% over the last quarter, and  1.66% for the past six months. 

Earnings Per Share (EPS):

When a company shows a steady upwards earnings trend, it is a good indicator that the company will dominate companies with a more volatile earnings trend. Independent Bank Corporation (NASDAQ:IBCP)’s EPS is 1.46.  Last year, their EPS growth was 16.70% while their EPS growth over the past five years is 8.90%.  Analysts are predicting Independent Bank Corporation’s stock to grow 17.06% over the next year and 8.00% over the next five.

With most types of investments, there is typically some level of risk. This is no different when dealing with the stock market. Investors have to decide how much risk is acceptable and plan accordingly. Many new stock market investors face the challenge of deciding where to begin. Following strategies that have proven to work in the past may be one way to go. Many investors will look to mimic the strategies of the most celebrated investors. Although this may be a good way to start, it may be necessary to fully understand every aspect that those successful investors examine. Blindly following trading plans without doing the proper research can lead to future trouble down the line if there is indeed a market shake-up.

Nothing contained in this publication is intended to constitute legal, tax, securities, or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.