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Bancorp (TBBK) is drawing attention ahead of its quarterly earnings report, with analysts flagging the event as a possible source of stock price swings and turning more cautious on near term earnings expectations.

See our latest analysis for Bancorp.

Those earnings expectations come after a sharp 14.73% 90 day share price decline and a 5.75% one day drop to US$67.19. However, the 1 year total shareholder return of 20.93% and 5 year total shareholder return of about 4x suggest longer term momentum has still been positive even as shorter term sentiment cools.

If this sort of pre earnings tension has you looking wider, it could be a good moment to broaden your watchlist and check out fast growing stocks with high insider ownership.

With Bancorp trading below analyst price targets and sitting on a 45% intrinsic discount, the key question is whether recent weakness has left the shares undervalued or if the market already reflects its future growth.

The most followed narrative currently points to a fair value of $76.50 for Bancorp versus the last close at $67.19, so the market is sitting below that anchor while analysts and narrative authors keep their long term assumptions steady.

The Bancorp is experiencing substantial growth in Fintech Solutions, driven by increasing volumes and expanded partnerships. This growth is expected to continue with credit sponsorship and higher fees from ACH, card, and payment processing. These initiatives are likely to boost revenue significantly in the coming years.

Read the complete narrative.

Want to see what sits behind that fintech story and a fair value above today’s price? The narrative leans on richer margins, higher earnings power and a lower future earnings multiple than many investors might assume. Curious which set of conservative sounding inputs still supports that valuation gap?

Result: Fair Value of $76.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, the story could change quickly if fintech partners pull back or if REBL loans and leasing experience additional credit issues that pressure margins and earnings guidance.

Find out about the key risks to this Bancorp narrative.

The earlier fair value of $76.50 paints Bancorp as undervalued by about 12%. On earnings multiples, the picture is more mixed. The shares trade on a P/E of 13x, which is higher than the US Banks industry at 11.8x, but below peers at 15x and below a fair ratio of 15.4x.

In plain terms, the stock is priced richer than the sector overall but cheaper than similar names and the fair ratio the market could move towards. This leaves you weighing whether that gap looks like a cushion or a warning sign.

See what the numbers say about this price — find out in our valuation breakdown.

If you see the numbers differently or prefer to test your own assumptions, you can build a custom Bancorp view in just a few minutes with Do it your way.

A great starting point for your Bancorp research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

If Bancorp has caught your eye, do not stop there. Broaden your opportunity set now so you are not relying on a single story.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. 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.

Companies discussed in this article include TBBK.

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