Yahoo Finance Will At Home Group Inc’s (NYSE:HOME) Earnings Grow Over The Next Few Years?
The latest earnings announcement At Home Group Inc’s (NYSE:HOME) released in January 2018 suggested that the business gained from a robust tailwind, eventuating to a double-digit earnings growth of 17.53%. Below is my commentary, albeit very simple and high-level, on how market analysts perceive At Home Group’s earnings growth outlook over the next couple of years and whether the future looks even brighter than the past. I will be using net income excluding extraordinary items in order to exclude one-off volatility which I am not interested in. View our latest analysis for At Home Group
Market analysts’ consensus outlook for the upcoming year seems positive, with earnings growth more than doubling. Earnings continue to grow strongly in the next couple of years, finally reaching US$129.05M in 2021.
Even though it is useful to understand the rate of growth each year relative to today’s level, it may be more valuable to determine the rate at which the earnings are moving on average every year. The advantage of this approach is that we can get a better picture of the direction of At Home Group’s earnings trajectory over the long run, irrespective of near term fluctuations, which may be more relevant for long term investors. To calculate this rate, I’ve appended a line of best fit through the forecasted earnings by market analysts. The slope of this line is the rate of earnings growth, which in this case is 26.66%. This means that, we can expect At Home Group will grow its earnings by 26.66% every year for the next couple of years.
Next Steps:
For At Home Group, I’ve put together three relevant factors you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is HOME worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether HOME is currently mispriced by the market.
Other High-Growth Alternatives: Are there other high-growth stocks you could be holding instead of HOME? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
