Yahoo Finance Hunting PLC (LON:HTG): Is It A Smart Long Term Opportunity?
After Hunting PLC’s (LON:HTG) earnings announcement on 31 December 2018, analysts seem cautiously optimistic, with earnings expected to grow by 3.3% in the upcoming year compared with the past 5-year average growth rate of -11%. Presently, with latest-twelve-month earnings at US$89m, we should see this growing to US$92m by 2020. Below is a brief commentary on the longer term outlook the market has for Hunting. Readers that are interested in understanding the company beyond these figures should research its fundamentals here.
View our latest analysis for Hunting
How is Hunting going to perform in the near future?
The view from 13 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. To get an idea of the overall earnings growth trend for HTG, I’ve plotted out each year’s earnings expectations and inserted a line of best fit to determine an annual rate of growth from the slope of this line.
By 2022, HTG’s earnings should reach US$107m, from current levels of US$89m, resulting in an annual growth rate of 7.6%. EPS reaches $0.64 in the final year of forecast compared to the current $0.54 EPS today. Margins are currently sitting at 9.8%, approximately the same as previous years. With analysts forecasting revenue growth of 0.21774 and HTG’s net income growth expected to roughly track that, this company may add value for shareholders over time.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For Hunting, I’ve put together three pertinent factors you should further research:
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 Hunting 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 Hunting is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of Hunting? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
