Eagle Bancorp, Inc. (NASDAQ:EGBN)

This is a real-life holding of mine. A small bank in one of the most affluent areas of the country, (around D.C.), with one of the most stable workforces, (the U.S. Government).

Since 2009, sales have grown an average of 29% per year and EPS has grown an average of 41% per year. These are great numbers in a slow economy. The profit margin has grown for four straight years, the earned on equity has also grown for four straight years and the debt-to-equity has fallen in each of the past 5 years. All very good trends. The current P/E is above its recent range, but inline with its longer-term average. The PEG ratio is very attractive. Unfortunately, this company does NOT pay a dividend, though it did 5 years ago, so it could always reinstate one if it wished. I am not counting on that, however.

I don't expect a lot out of this company. I have it here as it is one of my real-life holdings. I am only expecting it to appreciate about 10% per year, over the next 5 years, but that is based on its growth slowing to 1/2 its recent gains. If it keeps up its recent growth rate, that return could easily double to 20% per year or more, which is what I generally target for any of my real-life investments. (15% annual return through a combination of stock appreciation and dividend payments.) So potentially great potential, with decent expectations.