How Eddie Stobart Logistics plc (LON:ESL) Could Add Value To Your Portfolio

Attractive stocks have exceptional fundamentals. In the case of Eddie Stobart Logistics plc (LON:ESL), there’s has a a great track record of performance as well as a buoyant growth outlook going forward. Below is a brief commentary on these key aspects. If you’re interested in understanding beyond my broad commentary, take a look at the report on Eddie Stobart Logistics here.

Proven track record with reasonable growth potential

Investors in search for stocks with room to flourish should look no further than ESL, with its expected earinngs growth of 25%, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. In the past couple of years, ESL has ramped up its bottom line by over 100%, with its latest earnings level surpassing its average level over the last five years. Not only did ESL outperformed its past performance, its growth also exceeded the Transportation industry expansion, which generated a 23% earnings growth. This is an optimistic signal for the future.

AIM:ESL Future Profit January 8th 19

Next Steps:

For Eddie Stobart Logistics, I’ve put together three essential aspects you should further examine:

1. 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.

2. Valuation: What is ESL 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 ESL is currently mispriced by the market.

3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ESL? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

To help readers see past 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. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.