Small-cap stock Axos Financial (NYSE: $AX) offers affordable growth to investors.
Axos Financial is a holding company based in Las Vegas, Nevada. It is the parent company of Axos Bank, an up-and-coming lender that also offers investments and a trading platform.
Founded in 1999, Axos Bank today has assets under management of $30 billion U.S. and more than 500,000 customers, most of whom are based in America.
The stock has been a steady compounder over the years. In the past five years, AX stock has risen 105%, including a 15% gain over the last 12 months.
The share price has steadily grown as the company successfully executes on its growth strategy and posts solid financial results.
Yet even with the rise in the share price, Axos Financial’s stock trades at a forward price-to-earnings (P/E) ratio of 11 times, which is low even for a bank.
By comparison, the stock of JPMorgan Chase (NYSE: $JPM), the largest U.S. lender, trades at 15 times this year’s earnings estimates.
The valuation makes AX stock cheap in an otherwise overheated market. And Axos Financial is a small-cap stock with a market capitalization of only $5.58 billion U.S.
There’s no dividend payment provided by the company. But AX stock could still be an attractive option for investors on the hunt for value and capital appreciation.
AX stock is trading at $98.02 U.S. on July 30.
