Summary
Walker & Dunlop is an expanding company with sustainable growth planned through to 2020.
The stock is trading at 1.4x book value after the current stock market decline.
Walker & Dunlop gives investors an opportunity to pick up shares in a growing company at a reasonable price.
Introduction
Walker & Dunlop, Inc. (WD) is an expanding company which primarily focuses on commercial real estate loans.
Earnings growth has slowed recently and the company has plans in place to manage its future growth through to 2020.
A risk factor in Walker & Dunlop's earnings is the state of the economy and a slowdown would impact on its earnings. At present I think the economy is strong enough to support Walker & Dunlop's future growth plans.
The current stock market decline has brought the stock's valuation down to 1.4x book value. This gives investors an opportunity to pick up shares in a growing company that is priced to compensate for the risks of an economic slowdown.
